Question
Question 1 The BAA Company has established a budget of $50,000.00 for the production of 1000 units. Half of this amount is fixed. At an
Question 1
The BAA Company has established a budget of $50,000.00 for the production of 1000 units. Half of this amount is fixed.
At an actual production level of 500 units
(a)Determine the variable cost per unit
(b)Determine the fixed cost per unit
(c)Determine total fixed cost
(d)Determine total variable cost
(e)Determine total costs
Question 2
Some selected cost data for a batch of 2000 units of product C are given below
Direct materials + Direct labour$125,000.00
Factory Overheads
(All indirect, 40% variable)$37,500.00
Administration Expenses
(20% variable)$60,000.00
Selling & Distribution$60,000.00
($20,000 variable)
Compute the following
(a)prime Cost per unit
(b)total fixed Cost
(c)variable cost per unit
Question 3.
Consumer Centered Manufacturers Ltd produces a finished product that is measured in metres. The following table gives information that relates metres of production to total costs:
Output/metres
Total Costs $
290
10,600
440
15,100
390
13,600
570
19,000
330
11,800
270
10,000
510
17,200
Required:
Use the High/low method of cost separation to do the following:
(a)Determine the variable cost per metre of production.
(b)Determine the amount of fixed costs involved in production.
(c)Develop an equation that relates output to total costs.
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