Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard  cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...
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QUESTION 1

  1. Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard  cost of one chair is as follows:

GHe

Materials

15

Direct labour

8

Variable overheads

7

Required:

1.Calculate for one month

2. The variable cost of one chair b. the breaker en point

3. The profit if 200 chairs are sold

4. The number of chairs sold to give profit of GHe4,000

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