Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4
Question:
a. Break-Even Point in
b. Units to be sold to obtain the desired target profit of P60 000c. Percentage margin of safety
ABC (Pvt) ltd. is a manufacturing company based in Gaborone. Its employees are paid P80 per hour. Employee entitlements: Annual leave 15 working days Paid public annual holidays 12 Idle time allowed 5% of available clock time NB: ABC (Pvt) ltd operates 5 days per week which equates to 40 hours a week and there are 52 weeks in a year.
Required:
i. Calculate the annual productive time
ii. Define Idle time
Joint products P and Q result from a single manufacturing process. Common costs added up to P192,000 in a period when output was 2,500 units of product P and 3,000 units of product Q. Products P and Q can be sold at the split-off point for P40 and P80 per unit respectively. Calculate the amount of the common process costs that will be apportioned to product Q based on physical measurement.
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Olds