Question
Q # 5 The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows: Cost Item
Q # 5
The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows:
Cost Item | Estimated Unit Cost (Rs.) |
Direct materials | 32 |
Direct Labor | 20 |
Variable factory overhead | 15 |
Fixed factory overhead | 6 |
Variable marketing | 3 |
Fixed marketing | 4 |
Required
- Identify the estimated conversion cost per unit.
- Identify the estimated prime cost per unit.
- Determine the estimated total variable cost per unit
- Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.
Q # 5
Fixed and variable costs: In 200A, the Mercaldo Company had sales of Rs. 19,950,000 with Rs. 11,571,000 variable and Rs. 7,623,000 fixed cost. 200B sales are expected to decrease 15% and the cost relationship is expected to remain constant (the fixed cost will not change).
Required: Determine Mercaldo Companys expected operating income of loss for 200B.
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