Basic standard cost data of Zahoor & Co. is as under:

Opening Finished goods, October, 2007 2,500 units

Sales October, 2007 47,500 units

Standard variable costs per unit: Rupee(s)

Material and labour 8.00

Factory overhead 2.00

Distribution expenses 1.00

Selling price per unit Rs.20

Fixed cost for October, 2007:

Manufacturing expenses (Rs.4/- per unit on normal capacity) Rs.200,000

Distribution expenses 75,000

Administration expenses 50,000

Others 25,000

Required:

Calculate following throught absorption costing

Normal capacity

Production units

Direct Material

Direct Labour

Variable Overhead

Fixed overhead applied

Total manufacturing Cost

Closing Finished Goods

Opening Finished Goods

Under or over applied

Gross profit

Net Profit