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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:

  1. Calculate the total cost of production for each product.
  2. Determine the cost per unit if the production quantities are 10,000 units for Alpha and 15,000 units for Beta.
  3. Calculate the selling price per unit for both products if the desired profit margin is 20% on cost.
  4. Evaluate the impact on the total cost if direct material costs increase by 10%.

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