Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tas Choco Ltd has the following information for the production of Vanilla Chocolate. The company has budgeted to produce 60,000 units, and the variable
Tas Choco Ltd has the following information for the production of Vanilla Chocolate. The company has budgeted to produce 60,000 units, and the variable costs per unit of production are as follows. Direct Materials Direct Labour Variable overheads 6.20 4.30 3.00 The fixed production cost is 240,000. Required: i) Calculate the cost per unit using marginal costing? (2 marks) (2/2 marks) ii) What is cost per unit using absorption costing? iii) Calculate the selling price per unit if a mark-up of 30% is required using absorption costing method? (3/2 marks) iv) Calculate the selling price per unit if a mark-up of 30% is required using marginal costing method? (3 marks)
Step by Step Solution
★★★★★
3.38 Rating (160 Votes )
There are 3 Steps involved in it
Step: 1
i Cost per unit Marginal Costing Direct Materials Direct Labour Variable Overheads 620 4...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