11:47 9 4 KB/S TO LIE ..1 63 QUESTIONS FILE... Q . . . the year 2013. Particulars Rs. Rates and Taxes for factory premises 2,800 Lighting of the factory 5,200 Depreciation (Plant) 7,000 Staff Salaries 24,000 Management Salaries 12,000 Power (Variable) 9,000 Indirect wages 24,500 Repair and Maintenance 20,000 Cost of rectification of defective work (Variable) 5,600 Consumable Stores (Variable) 15,000 Selling expenses 14,660 General expenses 9,200 Receipt from sale of scrap (Variable) 2,400 8 | Page CHAPTER 1- CLASSIFICATION OF COSTS AND COST SHEET Profit from guest house 1,000 Production was 100000 units and the prime cost per unit was : Material - Rs. 1.80 and Wages -Rs. 1.20. The net selling price was Rs. 4.70 per unit. All the units were sold. As from 15t January, 2014 the selling price was reduced to Rs. 4.5 per unit. It was estimated that production could be increased in 2014 by 50% without incurring any overtime or extra shift working. Prepare statement showing (1) different elements of cost for 2013, (2) Estimated costs and profit for 2014, assuming that 150000 units will be produced and sold in the year. Except for the items stated to be variable, all other items of expenses are fixed in nature. Defectives are normal. O