Tas Choco Ltd has the following information for the production of Vanilla Chocolate. The company has...

 

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Tas Choco Ltd has the following information for the production of Vanilla Chocolate. The company has budgeted to produce 60,000 units, and the variable costs per unit of production are as follows. Direct Materials Direct Labour Variable overheads 6.20 4.30 3.00 The fixed production cost is 240,000. Required: i) Calculate the cost per unit using marginal costing? (2 marks) (2/2 marks) ii) What is cost per unit using absorption costing? iii) Calculate the selling price per unit if a mark-up of 30% is required using absorption costing method? (3/2 marks) iv) Calculate the selling price per unit if a mark-up of 30% is required using marginal costing method? (3 marks) Tas Choco Ltd has the following information for the production of Vanilla Chocolate. The company has budgeted to produce 60,000 units, and the variable costs per unit of production are as follows. Direct Materials Direct Labour Variable overheads 6.20 4.30 3.00 The fixed production cost is 240,000. Required: i) Calculate the cost per unit using marginal costing? (2 marks) (2/2 marks) ii) What is cost per unit using absorption costing? iii) Calculate the selling price per unit if a mark-up of 30% is required using absorption costing method? (3/2 marks) iv) Calculate the selling price per unit if a mark-up of 30% is required using marginal costing method? (3 marks)

Answer rating: 100% (QA)

i Cost per unit Marginal Costing Direct Materials Direct Labour Variable Overheads 620 4... View the full answer