Q # 8 The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows: Cost Item Estimated Unit Cost (Rs.) Direct materials 32 Direct Labor 20 Variable factory overhead 15 Fixed factory overhead 6 Variable marketing 3 Fixed marketing 4 Required Identify the estimated conversion cost per unit. Identify the estimated prime cost per unit. Determine the estimated total variable cost per unit Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.
Q # 8 The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows: Cost Item Estimated Unit Cost (Rs.) Direct materials 32 Direct Labor 20 Variable factory overhead 15 Fixed factory overhead 6 Variable marketing 3 Fixed marketing 4 Required Identify the estimated conversion cost per unit. Identify the estimated prime cost per unit. Determine the estimated total variable cost per unit Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...
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Q # 8
The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows:
Cost Item |
Estimated Unit Cost (Rs.) |
Direct materials |
32 |
Direct Labor |
20 |
Variable factory overhead |
15 |
Fixed factory overhead |
6 |
Variable marketing |
3 |
Fixed marketing |
4 |
Required
- Identify the estimated conversion cost per unit.
- Identify the estimated prime cost per unit.
- Determine the estimated total variable cost per unit
- Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.
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