>>> answer must be in tables please <<<<<< Ex.3 Apex company can produce 4,000 u
ID: 2556800 • Letter: #
Question
>>> answer must be in tables please <<<<<<
Ex.3 Apex company can produce 4,000 units of a products at 100% capacity. Following information n is available from its records Units 2,800 3,600 Power Repair&Maintenance; Indirect Labour Consumable stores Inspection Depreciation Sala Direct Material cost Re 1 per unit Direct wager Rs 4 per hour Rate of the production per hour is 10 units. You are required to compute the cost of the production at 100% 80% & 60% fixed items under the flexible budget. 1800 500 700 1,400 200 1,400 1,000 2,000 560 900 1,800 240 400 1,000 capacity level showing variable, semi variable and
Explanation / Answer
Computation of Variable and fixed component n Mixed cost: Power: Variable cost per unit: Change in cost /Change in units = (2000-1800)/(3600-2800)= $0.25 per unit Fixed cost: 2000 - 3600*.025 = 1100 Repair and maintenance: Variable cost per unit: Change in cost/ Change in Units = (560-500)/(3600-2800)= $ 0.075 per unit Fixed cost: 560 - 3600*0.075 = 290 Inspection: Variable cost per unit: Change in cost/ Change in units = (240-200)/ (3600-2800) = $0.05 per unit Fixed cost: 240 - 3600*.05 =60 FLEXIBLE BUDGET 4000 3200 2400 Variable cost: material 4000 3200 2400 Labour 1600 1280 960 Indirect labour 1000 800 600 Consumable store 2000 1600 1200 Total Variable cost 8600 6880 5160 Semi-variable cost: Power 2100 1900 1700 Reapir and maintenance 590 530 470 Inspection 260 220 180 Total Semi-variable cost 2950 2650 2350 Fixed cost: Depreciation 1400 1400 1400 Salaries 1000 1000 1000 Total fixed cost 2400 2400 2400 TOTAL COST OF PRODUCTION 13950 11930 9910
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