he following particulars about ABC company is provided to you: Production at 60% Capacity 9,000 Units Raw Material RO 25 per unit Direct Labor RO 30 per unit Direct Expenses RO 5 per unit Factory Expenses RO 18,000 (30 % fixed) Administration Expenses RO 27,000 (60% Variable)   Based on the above information     1. The prime cost at 60%, 80% and 100% capacity levels would be: a. RO 710,000, RO 530,000 and RO 880,000 b. RO 880,000, RO 530,000 and RO 710,000 c. RO 540,000, RO 720,000 and RO 900,000 d. RO 900,000, RO 720,000 and RO 540,000 Clear my choice Question 2   2. The works cost at 100% capacity level would be: a. RO 620,000 b. RO 926,400 c. RO 558,000 d. RO 742,200 Clear my choice Question 3   3. The total cost at 80% capacity would be: a. RO 964,200 b. RO 620,000 c. RO 585,000 d. RO 774,600 Clear my choice

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
icon
Related questions
Question

he following particulars about ABC company is provided to you:

Production at 60% Capacity

9,000 Units

Raw Material

RO 25 per unit

Direct Labor

RO 30 per unit

Direct Expenses

RO 5 per unit

Factory Expenses

RO 18,000 (30 % fixed)

Administration Expenses

RO 27,000 (60% Variable)

 

Based on the above information


 

 
1. The prime cost at 60%, 80% and 100% capacity levels would be:
a.
RO 710,000, RO 530,000 and RO 880,000
b.
RO 880,000, RO 530,000 and RO 710,000
c.
RO 540,000, RO 720,000 and RO 900,000
d.
RO 900,000, RO 720,000 and RO 540,000
Clear my choice

Question 2

 

2. The works cost at 100% capacity level would be:
a.
RO 620,000
b.
RO 926,400
c.
RO 558,000
d.
RO 742,200
Clear my choice

Question 3

 

3. The total cost at 80% capacity would be:
a.
RO 964,200
b.
RO 620,000
c.
RO 585,000
d.
RO 774,600
Clear my choice
 
 
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning