Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PCM Ltd manufactures three basic desktop computers and the following data applies: Cost () DPC500 DPC1000 DPC1500 Direct labour 102.00 110.00 120.00 Direct material 124.00

PCM Ltd manufactures three basic desktop computers and the following data applies: Cost () DPC500 DPC1000 DPC1500 Direct labour 102.00 110.00 120.00 Direct material 124.00 144.00 192.00 Direct expense 42.00 43.00 49.00 Selling price 770.00 850.00 950.00 The production overheads are calculated with an OAR of 350 per cent of the direct labour costs. All other overheads are based on an OAR of 22 per cent of the production cost. 


Determine: (a) the production cost for the three computers; (b) the total cost for all three; (c) the profit for all three; (d) the contribution for all three

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine the production cost total cost profit and contribution for the three computers we need ... 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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

Find a function (x, y) such that = (y, x).

Answered: 1 week ago

Question

How do certain genetic conditions affect motor control?

Answered: 1 week ago

Question

What amount when increased by 150% equals $575?

Answered: 1 week ago

Question

Calculate the missing value.

Answered: 1 week ago