You are required to tabulate the above data in the form of a suitable statement and indicate the…

You are required to tabulate the above data in the form of a suitable statement and indicate the… | savvyessaywriters.org

Model: Factory cost per unit – computation

The standard production for a particular work order is 25 units per day, and the price rate wage is 80 paise per unit if the production is 25 units or more. The rate is 60 paise if production is less than 25 units. Cost of material is 40 paise per unit. It is proposed to charge factory overheads under one of the following methods:

  1. 100% of labour cost
  2. 70% of prime cost

You are required to tabulate the above data in the form of a suitable statement and indicate the factory cost per unit under each of the above methods if the daily production is (i) 20 units (ii) 25 units and (iii) 30 units.

 

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