A factory is currently running at 50% capacity & produces 5000 units at a cost of OMR 90 per unit as per the following details: Material OMR 50 Labor OMR 15 Factory overheads OMR 15(40% Fixed) Administration overheads OMR 10(50% Fixed) The current selling price is OMR 100 per unit. The material cost per unit increases, at 80% capacity working, by 5% & selling price per unit falls by 5%. You are required to answer the following questions: 1.What is the amount of prime cost at 80% working capacity? 2.What is the amount of works cost at 80% working capacity? 3.What is the amount of cost of production at 80% working capacity? 4.What is the amount of selling price at 80% working capacity
A factory is currently running at 50% capacity & produces 5000 units at a cost of OMR 90 per unit as per the following details: Material OMR 50 Labor OMR 15 Factory overheads OMR 15(40% Fixed) Administration overheads OMR 10(50% Fixed) The current selling price is OMR 100 per unit. The material cost per unit increases, at 80% capacity working, by 5% & selling price per unit falls by 5%. You are required to answer the following questions: 1.What is the amount of prime cost at 80% working capacity? 2.What is the amount of works cost at 80% working capacity? 3.What is the amount of cost of production at 80% working capacity? 4.What is the amount of selling price at 80% working capacity
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:A factory is currently running at 50% capacity &
produces 5000 units at a cost of OMR 90 per unit as
per the following details:
Material
OMR 50
Labor
OMR 15
Factory overheads
OMR 15(40% Fixed)
Administration overheads
OMR 10(50% Fixed)
The current selling price is OMR 100 per unit. The
material cost per unit increases, at 80% capacity
working, by 5% & selling price per unit falls by 5%.
You are required to answer the following questions:
1.What is the amount of prime cost at 80% working
capacity?
2.What is the amount of works cost at 80% working
capacity?
3.What is the amount of cost of production at 80%
working capacity?
4.What is the amount of selling price at 80%
working capacity
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VIEWStep 2 Calculation of amount of prime cost at 80% working Capacity.
VIEWStep 3 Calculation of amount of Works cost at 80% working Capacity.
VIEWStep 4 Calculation of amount of cost of production at 80% working Capacity
VIEWStep 5 Calculation of amount of selling price at 80% working Capacity.
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