FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information is available for period 1 for George H. Ltd, which produces a single product.
|
£ |
Unit selling price |
30 |
Unit variable cost |
10 |
Manufacturing fixed |
200,000 |
Non-manufacturing overheads |
100,000 |
|
|
|
PER PERIOD |
Normal activity |
100,000 units |
Sales |
80,000 units |
The Cost of Sales under the variable costing method is:
a) £800,000
b) £1,200,000
c) None of the above
d) £960,000
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- Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead costarrow_forwardPlease provide correct solutionarrow_forwardAlgee Ltd plans to manufacture kettles and the following information is applicable: Estimated sales for the year 20.15 Estimated costs for the year 20.15 Direct material 14 000 units at R80 each R24 per unit Direct labour Factory overheads (all fixed) Selling expenses Administrative expenses (all fixed) R4 per unit R48 000 per annum 30% of sales R78 000 per annum 3.1 Calculate the break-even quantity 3.2 Calculate the break-even value using the marginal income ratio. 3.3 Calculate the selling price per unit if the profit per unit is R4. 3.4 Calculate the new break-even quantity and value if selling price is increased by 10%. 3.5 Calculate the selling price if 14 000 units provide an operating profit of RO after an additional advertising expense of R54 000arrow_forward
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