Question
Festa Oys one cost centre has indirect costs of: Variable indirect costs 70000 Fixed indirect costs 28000 Total 98000 In this cost centre, machine hours
Festa Oys one cost centre has indirect costs of:
Variable indirect costs 70000
Fixed indirect costs 28000
Total 98000
In this cost centre, machine hours are used in measuring the level of activity.
The normal level of activity is 700 and the real level of activity is 600 machine hours.
One product has direct material costs 50 /piece and direct labour costs 100 /piece
In producing this product, the cost centre in question is used for 3 machine hours. Other cost centres are not used in the production of this product.
What is the minimum production value and the normal production value of this product?
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