Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Batch Costing
The budgeted variable overheads of a company for the year of 2001 are as given as:
Department Overhead (shs.) Absorption base
A 150,000 15,000 direct labour hours
B 200,000 25,000 direct labour hours
C 120,000 20,000 direct labour hours
D 300,000 30,000 machine labour hours
Additional Information
A total of 50 machine hours were employed in this job
Required
a) Calculated the net cost of the batch
b) Cost/Unit
c) Selling Price of the batch
d) Selling Price unit
Solution
Particulars
Shs.
D Materials
D Labour:
Dept A (150 x 12)
1,800
Dept B (40 x 50)
6000
Dept C (60 x 20)
1,200
Dept D (100 x 10)
1,000
Prime Cost
Variable Overheads:
Dept A -15,000/15,000 x 150
1,500
Dept B - 200,000/25,000 x 40
320
Dept C - 120,000/20,000 x 60
360
Dept D - 300,000/300,000 x 50
500
Total Production Cost
94,280
Selling and admin costs - 10% (94,280)
9,428
Total Costs
103,708
Mark-up: Mark-up @ 25% x 103,708
25,927
Cost/Unit = 103,708/2000 units = 51.854
Selling Price unit = 129,635/2,000 = 64.8175
Total Variable Overheads Variances If Variable Overhead Expenditure Variance = Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads
How to fix price in times of competition
Extracts from P Co''s records for last month are as follows: BUDGET ACTUAL PRODUCTION 7,000 UNITS 7,200 UNITS Direct Material $42,000 $42,912 Calculate
what is the direct cost
types of operating costing
Describe the information about cost sheets? Ans) Cost sheet having of the direct and indirect expenses acquired in producing a given product and classifying the expenses acquire
examples of industries using this method
Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro p
Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid
sir i want to know the whole procress of costing
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd