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Based on the above information: i. Calculate (CLO 3, C3) the cost per unit (RM) for each cost element, for both production levels. ii. iii. Determine (CLO 3, C4) the cost behaviour of each cost element whether fixed cost,variable cost or mixed cost. Separate (CLO 3, C4) fixed cost and variable cost for cost elements that have mixed cost behaviour using the high-low method and state (CLO 3, C2) the cost function. Estimate (CLO 3, C3) the total cost for this cost element, if the production level is 25,000 units.

Based on the above information: i. Calculate (CLO 3, C3) the cost per unit (RM) for each cost element, for both production levels. ii. iii. Determine (CLO 3, C4) the cost behaviour of each cost element whether fixed cost,variable cost or mixed cost. Separate (CLO 3, C4) fixed cost and variable cost for cost elements that have mixed cost behaviour using the high-low method and state (CLO 3, C2) the cost function. Estimate (CLO 3, C3) the total cost for this cost element, if the production level is 25,000 units.

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Question A(iii) and B please
A. Continental Tyre Corporation is capable of producing 30,000 units of tyres per month. Below is information on production costs at the production levels of 10,000 units and 20,000 units. Production level Cost per unit Cost behaviour 10,000 20,000 Cost Element 10,000 units 20,000 units units units Direct Materials RM 4 RM 4 VARIABLE RM40,000 RM80,000 COST Direct Labor RM 6 RM 6 VARIABLE RM60,000 RM120,000 COST Indirect Materials RM 2 RM 2 VARIABLE RM20,000 RM40,000 COST Factory Utilities RM 1.2 RM 0.9 MIXED RM12,000 RM18,000 COST Factory Rental RM 2 RM 1 FIXED RM20,000 RM20,000 COST RM 2.4 RM 1.2 Factory Equipment Depreciation FIXED COST RM24,000 RM24,000
Transcribed Image Text:A. Continental Tyre Corporation is capable of producing 30,000 units of tyres per month. Below is information on production costs at the production levels of 10,000 units and 20,000 units. Production level Cost per unit Cost behaviour 10,000 20,000 Cost Element 10,000 units 20,000 units units units Direct Materials RM 4 RM 4 VARIABLE RM40,000 RM80,000 COST Direct Labor RM 6 RM 6 VARIABLE RM60,000 RM120,000 COST Indirect Materials RM 2 RM 2 VARIABLE RM20,000 RM40,000 COST Factory Utilities RM 1.2 RM 0.9 MIXED RM12,000 RM18,000 COST Factory Rental RM 2 RM 1 FIXED RM20,000 RM20,000 COST RM 2.4 RM 1.2 Factory Equipment Depreciation FIXED COST RM24,000 RM24,000
Based on the above information: i. Calculate (CLO 3, C3) the cost per unit (RM) for each cost element, for both production levels. ii. Determine (CLO 3, C4) the cost behaviour of each cost element whether fixed cost,variable cost or mixed cost. iii. Separate (CLO 3, C4) fixed cost and variable cost for cost elements that have mixed cost behaviour using the high-low method and state (CLO 3, C2) the cost function. Estimate (CLO 3, C3) the total cost for this cost element, if the production level is 25,000 units. В. Sketch and label (CLO 3, C2) the graph for each of the following cost items. i) ii) Variable cost per unit Fixed cost per unit Total fixed cost iii) iv) Total variable cost
Transcribed Image Text:Based on the above information: i. Calculate (CLO 3, C3) the cost per unit (RM) for each cost element, for both production levels. ii. Determine (CLO 3, C4) the cost behaviour of each cost element whether fixed cost,variable cost or mixed cost. iii. Separate (CLO 3, C4) fixed cost and variable cost for cost elements that have mixed cost behaviour using the high-low method and state (CLO 3, C2) the cost function. Estimate (CLO 3, C3) the total cost for this cost element, if the production level is 25,000 units. В. Sketch and label (CLO 3, C2) the graph for each of the following cost items. i) ii) Variable cost per unit Fixed cost per unit Total fixed cost iii) iv) Total variable cost
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