Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suriaman Cake House produce wedding cake. The estimation cost at production level 15,000 units are as follow: Cost Item RM Self-raising flour 19,000 Chef pastry
Suriaman Cake House produce wedding cake. The estimation cost at production level 15,000 units are as follow: Cost Item RM Self-raising flour 19,000 Chef pastry wages 15,000 Factory rental (fixed cost) 7,000 Indirect material (variable cost) 5,500 Depreciation - factory equipment 9,000 Depreciation - factory building 10,000 Indirect labour (variable cost) 8,000 Factory utilities (variable cost) 6,500 Factory equipment 108,000 REQUIRED: a) Form a cost function. b) Calculate total production cost and production cost perunit at the production level: (nearest two (2) decimal points) i. 15,000 units ii. 9,000 units c) At the production level 8,000 units, calculate: (nearest two (2) decimal points) i. Direct material cost ii. Variable overhead cost c
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started