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02. Kappa Go produces Dmega, an animal feed made by mixing and heating thr Alpha. Beta and Gamma. The company uses a standard costing system
02. Kappa Go produces Dmega, an animal feed made by mixing and heating thr Alpha. Beta and Gamma. The company uses a standard costing system to monitor its costs. The standard material cost for 100 kg of 0mega is as follows: Input Kg Cost per kg Cost per 100 kg of Omega {ii} 11$} Alpha 1&0 2-00 00-00 Beta 60 5-00 300-00 Gamma 20 1-00 20-00 Total l20 1500-00 Notes {1] The mixing and heating process is subject to a standard evaporation loss. {2] Alpha. Beta and Gamma are agricultural products and their quality and pric significantly from year to year. Standard prices are set at the average market last five years. Kappa Co has a purchasing manager who is responsible for pri supplier contracts. {3} The standard mix is set by the finance department. The last time this was :1 product launch which was five years ago. It has not changed since. Last month 11,600 kg of 0mega was produced, using the following inputs: Input Kg Cost per kg Total cost Lil [if lpha 2,200 1-30 3,9150 Beta 2,500 0-00 15,000 Gamma 9'20 1-00 9'20 Total 5.1520 10.000
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