Fixed And Variable Cost Probelm 2.xlsx

Full Costing method

Direct Material cost

OH cost Renovation Distrubuti service cost on distrubution

Direct Overhead cost Labour cost allocation rate

Total cost

Product A Product B Total Dept Cost 1

20500 15400 35900

14000 15600 29600

0.47 0.53

23649 26351 50000

1568 59716 1747 59098 3314 118814

Product C Product D Total Dept Cost 2

25500 10600 36100

17800 22000 39800

0.45 0.55

31307 38693 70000

1380 75987 1706 72999 3086 148986

800 1200 2000

2000 1500 3500

0.57 0.43

514 386 900

3314 3086 6400

Renovation service 1 Renovation Service 2 Total ren. Cost

Revenue from sales Sold Products Costs Profit from sales Cost of sales General overhead Profit In period

280800 247960 32840 7300 20000 5540

Produced units

Cost per Unit

1000 2000

60 30

3000 2000

25 36

1 1

3314 3086

Information Sold UnitsPrice P.U Revenues Product A 1000 50 50000 Product B 1500 36 54000 Product C 2800 31 86800 Product D 2000 45 90000 Total revenues 280800

Fixed Cost Internal service(Material) Direct Labour costs Depriciation Energy External Wages Indirect wages Total

Department 1 Department 2 Renovation 800 29600 13000 1000 15000

1200 39800 15000 1200 30000 10000

3500 70 100 30 700

Financial result with production A production Revenues Variable costs Gross margin Fixed costs+OH +Cost of sale Final Result Cost Of energy Department 1 Product A Product B Non-productive energy Amount Of machine work hours 142 158 produced units 1000 2000 energy power usage per hour Total energy usage Total energy costs variable energy cost/per unit

150 21300 4260 4.26

150 23700 4740 2.37

Calculation of variable costs per unit Costs Product A Product B Product C Direct material costs per unit 20.5 7.7 Energy cost per unit 4.26 2.37 Renovation cost per unit 4 4 Variable cost per unit 28.76 14.07 Total variable cost for product 28760 28140 Total variable costs(a+b+c+d)

1000

8.5 2.07 10.57 31710 106810

Variable Costing technique Total 2000 72900 28070 2300 30030 25700 161000

tion

Product c

Department 2 Product D Non productive energy 135 165 3000 2000 230 31050 6210 2.07

Product D

Re. service 2 Re . Service 2 5.3 1200 3.8 9.1 18200

106810

230 37950 7590 3.795

1200

800