Solve the total variable production

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Reference no: EM132562008

KOPO Ltd has the following information that relates to their production activities for the period ending 29 February 2020

Direct Material R202 500

Indirect Material R22 500

Direct Labour R90 000

Production Overheads

Factory Rent R5 400

Other variable overheads R12 600

Selling and Administration costs (40% - Fixed costs) R112 500

The level of 22 000 units was achieved during the period.

Question a: Calculate:

1 The prime cost per unit

2 The conversion costs in total and the conversion cost per unit

3 The total production 

4 The total variable production

5 Calculate the Net profit / (Loss) if only 8 800 units were sold at unit price of R275 each.

Reference no: EM132562008

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