Alliance Manufacturing Ltd manufactures three products; A, B and C. The following information is provided: Products                                                                         A                     B                     C                                                                          K                     K                     K Direct materials                                            2,500              10,000            1,000 Direct labour                                               3,000                  3,000               500 Variable Overheads                                   2,000                  5,000            2,500 Sales                                                         10,000                 20,000            5,000 Total fixed overheads K3, 000 Required: 5.1 Prepare a Marginal Cost Statement.

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
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Problem 4E: On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and...
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Alliance Manufacturing Ltd manufactures three products; A, B and C. The following information is provided:

Products

                                                                        A                     B                     C

                                                                         K                     K                     K

Direct materials                                            2,500              10,000            1,000

Direct labour                                               3,000                  3,000               500

Variable Overheads                                   2,000                  5,000            2,500

Sales                                                         10,000                 20,000            5,000

Total fixed overheads K3, 000

Required:

5.1

  • Prepare a Marginal Cost Statement.
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