Question
DEF Electronics Ltd. has provided the following cost data for different levels of production: Particulars of Costs 2,000 units 3,000 units 4,000 units Direct Material
DEF Electronics Ltd. has provided the following cost data for different levels of production:
Particulars of Costs | 2,000 units | 3,000 units | 4,000 units |
Direct Material | ₹10,00,000 | ₹15,00,000 | ₹20,00,000 |
Direct Labour | ₹8,00,000 | ₹12,00,000 | ₹16,00,000 |
Total Factory Overheads | ₹12,00,000 | ₹18,00,000 | ₹24,00,000 |
You are required to calculate:
- The total cost at an activity level of 3,500 units.
- The cost per unit at this activity level.
- The selling price per unit if a profit margin of 25% on cost is desired.
- The variable cost per unit if the fixed overheads are ₹6,00,000 per month.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
