See information in image attached. Questions: Using the hi-lo method calculate the variable manufacturing overheads per unit Calculate the total fixed manufacturing overheads. Calculate the variable selling and administration costs per unit. RAnswe
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
See information in image attached.
Questions:
Using the hi-lo method calculate the variable manufacturing
Calculate the total fixed manufacturing overheads.
Calculate the variable selling and administration costs per unit. RAnswer
Calculate the total fixed selling and administration costs.
Calculate the contribution per unit.
Assuming a contribution of R150 and total fixed costs of R1 600 500, calculate the break-even point in units. Round your answer to the nearest whole unit. Answerunits
Using the information provided in the question and your answer above, calculate the margin of safety percentage. Round your answer to two decimal places. Answer%
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