In £'000JanFebMar- Direct materials costs210.000260.000300.000- Direct labour costs140.000 180.000220.000Manufacturing overheads80.00080.00080.000- Advertising cost42.000 54.00066.000- Selling stores renting cost30.00030.00030.000- Selling wages38.00042.00058.000- Administration cost150.000150.000150.0007.0009.00011.000Number of products sold(units)1. Classify the above costs into variable costs, fixed costs andmixed costs. Use high-low method to separate variable andfixed components in the mixed costs.2. Prepare an Managerial Income statement in April. The [58]estimate revenue in April is £2,000,000,000, and the salesvolume is expected to be 14.000 units58

1. Fixed Costs - These are costs which do not change in the change in the level of activity. These…

1. Classify the above costs into variable costs, fixed costs and mixed costs. Use high-low method to separate variable and fixed components in the mixed costs. 2. Prepare an Managerial Income statement in April. The estimate revenue in April is £2,000,000,000, and the sales volume is expected to be 14,000 units

1. Classify the above costs into variable costs, fixed costs and mixed costs. Use high-low method to separate variable and fixed components in the mixed costs. 2. Prepare an Managerial Income statement in April. The estimate revenue in April is £2,000,000,000, and the sales volume is expected to be 14,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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