Question
The total cost to produce 10,000 units is SAR 880000, and the total cost to produce 15,000 units is SAR 1,260000. Required: a. Develop a
The total cost to produce 10,000 units is SAR 880000, and the total cost to produce 15,000 units is
SAR 1,260000.
Required:
a. Develop a cost function for this cost.
b. Estimate the total cost to produce 18,000 units.
Mohamad Co. sells product P at a price of SR 60 a unit. The per-unit cost data are: direct materials
SR 19, direct labor SR 20, and overhead SR10 (20% fixed and 80% variable). Mohamad has
sufficient capacity to accept a special order for 40,000 units just received.
The total cost to produce 10,000 units is SAR 880000, and the total cost to produce 15,000 units is
SAR 1,260000.
Required:
a. Develop a cost function for this cost.
b. Estimate the total cost to produce 18,000 units.
Mohamad Co. sells product P at a price of SR 60 a unit. The per-unit cost data are: direct materials
SR 19, direct labor SR 20, and overhead SR10 (20% fixed and 80% variable). Mohamad has
sufficient capacity to accept a special order for 40,000 units just received.
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Cost Accounting
Authors: William K. Carter
14th edition
759338094, 978-0759338098
