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
Sensitivity Analysis The only certain thing is that nothing is sure thing. Cost structures can be anticipated to vary over the time period. Management should vigilantly analyze
Denair Fine Wines, Inc., is planning to bring out a higher-quality wine product than any currently available in Stanislaus county. They've decided on selling the blended, fortified
What are the limitations of unit cost.
Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi
Budgetary Planning and Control Budgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in the defined duration. Th
Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories: • Variable • Fixed • Mixed •
Fixed Costs Are costs such do not change along with of the level of output? It is also named as autonomous cost, as it stays the similar irrespective of the activity level as
What are the key reasons for product cost differences among traditional costing system and ABC systems? Explain four decisions for which ABC information is useful?
Capital We have seen previous in this section that the fundamental accounting equality states as: Assets = liabilities + owners equity. From the illustration of balanc
Accounting Records - Nature and Purpose of Cost Accounting The quantitative information employed in the management and cost accounting systems can be obtained from with two ac
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