Ex. 3. Production costs of Oriental Enterprises Limited are as follows: Output (in Units) Cost () Direct materials Direct labour Factory overhead Works Cost 60% 1,200 24,000 7,200 12,800 44,000 Level of activity 70% R 1.400 28,000 8,400 13,600 50,000 80% { 1,600 32,000 9,600 14,400 56,000 A proposal to increase production to 90% level of activity is under the consideration of management. The proposal is not expected to involve any increase in fixed factory overheads. Prepare a statement showing the prime cost, total marginal cost and total factory cost at 90% level activity. [Ans. 46,800; 54,000; 62,000]