Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Months Production Direct materials Factory workers (wages) Factory supervisors (salary) Premises Rental Maintenance costs * April 5 800 units R1 336 030 R1 566 000

Months

Production

Direct materials

Factory workers (wages)

Factory supervisors (salary)

Premises Rental

Maintenance costs *

April

5 800 units

R1 336 030

R1 566 000

R222 600

R820 000

R534 240

May

7 400 units

R1 704 590

R1 998 000

R222 600

R820 000

R551 520

June

8 600 units

R1 981 010

R2 322 000

R222 600

R820 000

R564 480

*The maintenance relates to plant and machinery, and it is charged at a flat rate per month plus an additional cost based on the number of units produced.

The entity sells its products at R950 per unit.

a) Calculate the total variable cost per unit in the month of June. (6)

b) What is the fixed cost for the month of June? (4)

c) Calculate contribution per unit. (2)

d) What will the total cost be for the month of July, if production is 12 000 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Describe the seven standard parts of a letter.

Answered: 1 week ago

Question

Explain how to develop effective Internet-based messages.

Answered: 1 week ago

Question

Identify the advantages and disadvantages of written messages.

Answered: 1 week ago