Suriaman Cake House produce wedding cake. The estimation cost at production level 15,000 units are as...

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Suriaman Cake House produce wedding cake. The estimation cost at production level 15,000 units are as follow: Cost Item Self-raising flour Chef pastry wages Factory rental (fixed cost) Indirect material (variable cost) Depreciation factory equipment Depreciation factory building Indirect labour (variable cost) Factory utilities (variable cost) Factory equipment REQUIRED: a) b) RM 19,000 15,000 7,000 5,500 9,000 10,000 8,000 6,500 108,000 Form a cost function. Calculate total production cost and production cost perunit at the production level: (nearest two (2) decimal points) 15,000 units 9,000 units i. ii. At the production level 8,000 units, calculate: (nearest two (2) decimal points) Direct material cost ii. Variable overhead cost Suriaman Cake House produce wedding cake. The estimation cost at production level 15,000 units are as follow: Cost Item Self-raising flour Chef pastry wages Factory rental (fixed cost) Indirect material (variable cost) Depreciation factory equipment Depreciation factory building Indirect labour (variable cost) Factory utilities (variable cost) Factory equipment REQUIRED: a) b) RM 19,000 15,000 7,000 5,500 9,000 10,000 8,000 6,500 108,000 Form a cost function. Calculate total production cost and production cost perunit at the production level: (nearest two (2) decimal points) 15,000 units 9,000 units i. ii. At the production level 8,000 units, calculate: (nearest two (2) decimal points) Direct material cost ii. Variable overhead cost

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SOLUTION a To form a cost function we need to identify the cost items that vary with the level of pr... View the full answer