The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows: Cost Item Estimated Unit Cost (Rs.) Direct materials 32 Direct Labor 20 Variable...


The estimated unit costs for a company operating at a production and sales level of 12,000 units are as follows:



































Cost Item




Estimated Unit Cost (Rs.)



Direct materials



32



Direct Labor



20



Variable factory overhead



15



Fixed factory overhead



6



Variable marketing



3



Fixed marketing



4




Required



  1. Identify the estimated conversion cost per unit.

  2. Identify the estimated prime cost per unit.

  3. Determine the estimated total variable cost per unit

  4. Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.



Aug 19, 2022
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