help me out with the solution of the below sum

Cost Accounts 631 views 3 replies

Q.8      The cost of an article at a capacity level of 10,000 units is given under X below. For a variation in capacity above or below this level the individual expenses vary as indicated in Y below:

 

 

X (Rs.)

Y

Materials      

Wages          

Power           

Repairs        

Stores         

Inspection     

Office Overheads

Depreciation   

Selling expenses

50,000

30,000

 3,000

 3,500

 2,000

   800

 3,600

10,000

 4,500

 100% Varying

 100%   

  80%   

  80%   

 100%   

  25%   

  25%   

 100%   (Fixed)

  50% Varying

 

1,07,400

 

Cost per unit 10.74. Find out the unit cost of the product under each individual expense at production levels of 4,000 units and 6,000 units.

 

give me the ans

pls thanks in advance

Replies (3)

Particulars
cost p.u.

Level of Production

 
 
 
4000
6000

Variable exp :

 
 
 

materials

5
20000
30000

wages

3
12000
18000

power

0.24
960
1440

repairs

0.28
1120
1680

stores

2
8000
12000

inspection

0.02
80
120

office ohs.

0.09
360
540

selling exp

0.225
900
1350
 
 
 
 

total variable cost

 
43420
65130
 
 
 
 

Fixed exp.

 
 
 
 
 
 
 

power (20%)

 
600
600

repairs (20%)

 
700
700

inspection (75%)

 
600
600

office ohs. (75%)

 
2700
2700

depreciation

 
10000
10000
 
 
 
 

total fixed cost

 
14600
14600
 
 
 
 
 
 
 
 

total cost

 
58020
79730

cost per unit

 
14.505
13.28833
 

hey please dont mind the formatting of the answer...m new here so please bear with it... 

DEAR YOGESH,

 

HERE IS THE ANSWER. SORRY GAURAV, U GOT A WRONG ANSWER. PLEASE CHECK PER UNIT COST OF STORES.

 

 

PARTICULARS P.U. COST OPERATING LEVEL
    4000 UNITS 6000 UNITS
VARIABLE COST      
MATERIALS 5 20000 30000
WAGES 3 12000 18000
POWER 0.24 960 1440
REPAIRS 0.28 1120 1680
STORES 0.2 800 1200
INSPECTION 0.02 80 120
OFF. OVHD. 0.09 360 540
SELLING EXP. 0.225 900 1350
TOTAL VARIABLE COST   36220 54330
       
FIXED COST      
POWER   600 600
REPAIRS   700 700
INSPECTION   600 600
OFF. OVHD.   2700 2700
DEPRECIATION   10000 10000
SELLING EXP.   2250 2250
TOTAL FIXED COST   16850 16850
TOTAL COST   53070 71180
COST PER UNIT   13.27 11.86
     

 

 

 REGARDS,

 

MANOJ


CCI Pro

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