he following particulars about ABC company is provided to you: Production at 60% Capacity 9,000 Units Raw Material RO 25 per unit Direct Labor RO 30 per unit Direct Expenses RO 5 per unit Factory Expenses RO 18,000 (30 % fixed) Administration Expenses RO 27,000 (60% Variable)   Based on the above information     1. The prime cost at 60%, 80% and 100% capacity levels would be: a. RO 710,000, RO 530,000 and RO 880,000 b. RO 880,000, RO 530,000 and RO 710,000 c. RO 540,000, RO 720,000 and RO 900,000 d. RO 900,000, RO 720,000 and RO 540,000 Clear my choice Question 2   2. The works cost at 100% capacity level would be: a. RO 620,000 b. RO 926,400 c. RO 558,000 d. RO 742,200 Clear my choice Question 3   3. The total cost at 80% capacity would be: a. RO 964,200 b. RO 620,000 c. RO 585,000 d. RO 774,600 Clear my choice

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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he following particulars about ABC company is provided to you:

Production at 60% Capacity

9,000 Units

Raw Material

RO 25 per unit

Direct Labor

RO 30 per unit

Direct Expenses

RO 5 per unit

Factory Expenses

RO 18,000 (30 % fixed)

Administration Expenses

RO 27,000 (60% Variable)

 

Based on the above information


 

 
1. The prime cost at 60%, 80% and 100% capacity levels would be:
a.
RO 710,000, RO 530,000 and RO 880,000
b.
RO 880,000, RO 530,000 and RO 710,000
c.
RO 540,000, RO 720,000 and RO 900,000
d.
RO 900,000, RO 720,000 and RO 540,000
Clear my choice

Question 2

 

2. The works cost at 100% capacity level would be:
a.
RO 620,000
b.
RO 926,400
c.
RO 558,000
d.
RO 742,200
Clear my choice

Question 3

 

3. The total cost at 80% capacity would be:
a.
RO 964,200
b.
RO 620,000
c.
RO 585,000
d.
RO 774,600
Clear my choice
 
 
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