WRITERS' Company Yr 2018-19 Fountain Pen Ball point Units 10000 20000 Area occupied (sq feet) 7000 8000 Variable cost – Direct 32 25 Fixed Cost - Direct (per unit) 10 8 Rent - Fixed Cost per month (Indirect - common for all products) 3,00,000.00 The Fixed indirect cost of Rent of Rs 3,00,000/- is to be allocated to both the products The company was doing this on the "number of units" basis till now. a. Please compute cost per unit of each product basis the above method
WRITERS' Company Yr 2018-19 Fountain Pen Ball point Units 10000 20000 Area occupied (sq feet) 7000 8000 Variable cost – Direct 32 25 Fixed Cost - Direct (per unit) 10 8 Rent - Fixed Cost per month (Indirect - common for all products) 3,00,000.00 The Fixed indirect cost of Rent of Rs 3,00,000/- is to be allocated to both the products The company was doing this on the "number of units" basis till now. a. Please compute cost per unit of each product basis the above method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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WRITERS' Company
Yr 2018-19
Fountain Pen
Ball point
Units
10000
20000
Area occupied (sq feet)
7000
8000
Variable cost – Direct
32
25
Fixed Cost - Direct (per unit)
10
8
Rent - Fixed Cost per month (Indirect - common for all products)
3,00,000.00
The Fixed indirect cost of Rent of Rs 3,00,000/- is to be allocated to both the products
The company was doing this on the "number of units" basis till now.
a. Please compute cost per unit of each product basis the above method
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