Bakpoweh Sdn. Bhd. (BSB)sausages producer provides the following information for January 2022: 

1. The cost of meat for a packet of sausages is RM 3.25. 

2. Direct labour cost is RM 2.25 for a packet of sausages. 

3. Supervisor salary is RM 23,000 per month. 

4. The utilities cost is RM 9,000 per month plus RM 0.35 for a packet of sausages.

5. Insurance and real estate tax is RM 6,400 per month. 

Required:

(a) Determine each cost item above whether it is fixed cost, variable cost or mixed cost. 

(b) Calculate the total cost of the product if BSB produces 85,000 packs of sausages in January 2021.

Answer rating: 100% (QA)

Cost Classification and Total Cost Calculation for Bakpoweh Sdn Bhd a Cost Classification Cost of me... View the full answer