Answered: Budgeted Production Costs Output 11,300…

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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Additional Information Sales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. a. b. Direct material cost is a variables cost and other production overheads are fixed cost. C. Direct labour consists of machine operatives wages and the total wages behave as a step cost: Total Direct Labour cost Output Up to 7.500 units Over 7,501 and up to 11.000 units Over 11.001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 4,850 BD 8,563 BD 10,484 d. BD 1.200 fils per unit. Required the budgeted direct material under the output of 11300 unit is:

Budgeted Production Costs
Output
11,300 units
7,000 units
BD
14,000 u
BD
Costs
BD
44,100
82,200
Sales Revenue
9,800
19,600
Direct material
13,400
21,800
Machine running costs
4,850
10,484
Direct labour
9,852
9,852
Other production overheads
37.902
61,736
Total production costs
BD19600
BD15820
none of the given answers

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