>>> Answer in a table please <<< Ex.3 Apex company can produce 4,000 units of a

Question

>>> Answer in a table please <<<

Ex.3 Apex company can produce 4,000 units of a products at 100% capacity. Following information n is available from its records Units 2,800 3,600 Power Repair&Maintenance; Indirect Labour Consumable stores Inspection Depreciation Sala Direct Material cost Re 1 per unit Direct wager Rs 4 per hour Rate of the production per hour is 10 units. You are required to compute the cost of the production at 100% 80% & 60% fixed items under the flexible budget. 1800 500 700 1,400 200 1,400 1,000 2,000 560 900 1,800 240 400 1,000 capacity level showing variable, semi variable and

Explanation / Answer

Calculation of Semi Variable Cost:- Change in Cost/Change in Qty

Power- 2000-1800/3600-2800=.25  

Therefore Fixed Cost=1800-(2800*.25=700)=1100 ( Fixed Cost= Total Cost-Variable cost), Var Cost=Rate per Qty*Qty

Repair & Maintenance:-560-500/3600-2800=.075

Therefore Fixed Cost:-500-(2800*.075=210)=290

Inspection:-240-200/3600-2800=.05

Therefore Fixed Cost:-200-(2800*.05=140)=60

Calculation of Qty:-

4000 unit at 100% production

Therefore:- 80%=4000*80%=3200

60%=4000*60%=2400

*Depreciation and Salary are of Fixed Nature

Particulars Rate 100% 80% 60% Quantity 4000 3200 2400 Variable cost D.M Qty*1 4000 3200 2400 D.L (Qty/10)*4 1600 1280 960 Indirect Labour Qty*0.25 1000 800 600 Consumable Stores Qty *0.5 2000 1600 1200 Total (A) 8600 7080 5160 Semi Variable Cost Power Qty*0.25 1000 800 600 Repair & Maintenance Qty*0.075 300 240 180 Inspection Qty*0.05 200 160 120 Total (B) 1500 1200 900 Fixed Power 1100 1100 1100 Repair & Maintenance 290 290 290 Inspection 60 60 60 Depreciation (Given) 1400 1400 1400 Salary ( Given) 1000 1000 1000 Total (C) 3850 3850 3850 Total Cost (A+B+C) 13950 12130 9910

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