Production and cost data of Akoo Ltd have been recorded over two years thus: Last year...
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Production and cost data of Akoo Ltd have been recorded over two years thus: Last year Current year Production 60,000 units 64,000 units Total costs (GH¢) 1,820,000 1,961,400 Between last year and the current year, there has been 5% cost inflation. Required i) Calculate the real fixed and variable costs ii) Estimate what total cost will be next year when it is expected that there will be a 4% cost push inflation and output will be 70,000 units. Production and cost data of Akoo Ltd have been recorded over two years thus: Last year Current year Production 60,000 units 64,000 units Total costs (GH¢) 1,820,000 1,961,400 Between last year and the current year, there has been 5% cost inflation. Required i) Calculate the real fixed and variable costs ii) Estimate what total cost will be next year when it is expected that there will be a 4% cost push inflation and output will be 70,000 units.
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Answer rating: 100% (QA)
The Real Fixed Cost is 1100000 and the Variable Cost 768000 Next year Total cost with expected infla... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller-nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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