The following costs relate to the production and sales of 10 bicycles: Direct materials (Variable) 6...

 

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The following costs relate to the production and sales of 10 bicycles: Direct materials (Variable) 6 cost per unit Direct labor (Variable) 10 cost per unit Variable overheads 4 cost per unit Variable selling and administration 5 cost per unit Total fixed overheads 300 Total fixed selling and administration 150 NOTE: Each bicycle is sold for 200 Required A)Calculate the cost of producing ONE bicycle under variable costing system and B)Prepare a contribution income statement The following costs relate to the production and sales of 10 bicycles: Direct materials (Variable) 6 cost per unit Direct labor (Variable) 10 cost per unit Variable overheads 4 cost per unit Variable selling and administration 5 cost per unit Total fixed overheads 300 Total fixed selling and administration 150 NOTE: Each bicycle is sold for 200 Required A)Calculate the cost of producing ONE bicycle under variable costing system and B)Prepare a contribution income statement

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A Cost of Producing One Bicycle under Variable Costing Variable Cost per Unit Direct MaterialsDi... View the full answer