Africup Ltd has the following information that relates to their production activities for the period ending 28 February 2013: Direct Material R450 000 Indirect Material (all variable) R50 000 Direct Labour R200 000 Manufacturing Overheads - Factory Rent R12 000 - Other variable overheads R28 000 Selling and Administration costs (40% being variable) R250 000 The production level of 10 000 units was achieved during the period.

Calculate: a) Prime costs

b) Conversion costs

c) Production cost per unit

d) Variable production cost per unit

e) Calculate the Net profit / (Loss) if only 7 500 units were sold at a unit price of R200 each

Answer rating: 100% (QA)

a Prime costs include direct materials and direct labor Prime costs Direct Material Direct Labour Pr... View the full answer