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o marks) Durable Ltd produces shoes for sale. The company will only produce shoes after customers have confirmed their orders. 300 pair of shoes were
o marks) Durable Ltd produces shoes for sale. The company will only produce shoes after customers have confirmed their orders. 300 pair of shoes were produced and sold in 20X6. The following shows the overhead costs incurred for each business activity for 20X6. (c) Costs incurred in 20X6 Supervisor's salary and benefits Hourly workers' wages and benefits Equipment depreciation and rentals Equipment repairs 4,500 18,000 6,500 5,500 34,500 $130 Purchased costs per pair of shoes Equipment repairs cost of $2,500 was deemed as fixed cost and the remaining equipment repairs cost was considered as variable cost. The cost driver for all variable costs was the number of pair of shoes sold. ) Calculate the fixed cost and variable overhead cost per pair of shoes sold and hence derive the total costs for 20X6
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