Costing

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Shruthi (Querist)
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01 November 2013 Marginal costing ipcc

A plant produces a productr in the quantity of 10000 units @ a cost of Rs 3 per unit. If 20000 units are produced, the cost per unit will be TS 2.50 pewr unit. What are the total fixed costs? What is the variable

Ans 145455 Fixed cost= 10000 Rs, Variable cost per unit = 2

CA Vijeta Verma

CA Vijeta Verma (Expert)
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01 November 2013 total cost
at 10000units=30000
at 20000units=50000
Variable cost/unit=RS(50000-30000)/(20000-10000)units=Rs 2/unit

now,Fixed cost =50000(total cost at 20000units)- Rs2/unit*20000units(variable cost)
=Rs10000 fixed cost.

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