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ABC Manufacturing Ltd. has the following cost data for the production of its two products, Alpha and Beta: Particulars Alpha () Beta () Direct Material
ABC Manufacturing Ltd. has the following cost data for the production of its two products, Alpha and Beta:
Particulars | Alpha (₹) | Beta (₹) |
Direct Material | 1,20,000 | 1,60,000 |
Direct Labour | 1,50,000 | 2,00,000 |
Factory Overheads | 1,80,000 | 2,50,000 |
Selling and Distribution | 70,000 | 90,000 |
Requirements:
- Calculate the total cost of production for each product.
- Determine the cost per unit if the production quantities are 10,000 units for Alpha and 15,000 units for Beta.
- Calculate the selling price per unit for both products if the desired profit margin is 20% on cost.
- Evaluate the impact on the total cost if direct material costs increase by 10%.
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