Business, 29.10.2021 01:50, andyyandere8765
Starbex Ltd. manufactures a single product for which the following data based on a budgeted capacity of 196,000 units per month, are as follows:
Stock, output and sales data (in units)
Details January
Sales 160,000
Opening stock 30,000
Closing stock 80,000
Production 210,000
Cost Data
Details $
Direct materials 50
Direct labour 25
Variable Production Overheads 43
Fixed administrative and selling overheads were estimated at $300,000 and $420,000 respectively. During the periods, the company sold one unit of its product for $180 and Total Fixed Production Overheads were $2,940,000.
Required:
(a) Determine the full cost per unit. (3 marks)
(b) What is the marginal cost per unit? (2 marks)
(c) Show the profit situation using Marginal costing principles. (7 marks)
(d) Show the profit situation using Absorption costing principles. (8 marks)
Answers: 1
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Starbex Ltd. manufactures a single product for which the following data based on a budgeted capacity...
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