The following data is the cost information for company A over a period for output level of 10000units; direct materials-2kg @ GHC5/kg, direct labour- 2hours @ GHC20/hour, production overheads of...


The following data is the cost information for company A over a period for output level of 10000units; direct materials-2kg<br>@ GHC5/kg, direct labour- 2hours @ GHC20/hour, production overheads of GHC40000, supervisors' salary amounting to<br>GHC30000. The company also has a machine at cost of GHC100000 to be used for ten years. The accountant identifies that<br>one-third of supervisors' salary varies with output levels whiles 60% of production overheads remains constant as output<br>changes. Using the accounts classification method, the estimated cost function is<br>OA. C = 54000 + 52.6x<br>O B. C = 45000 + 44.2x<br>OC.C = 45000 + 52.4x<br>OD. C = 40000 + 42.6x<br>Reset Selection<br>

Extracted text: The following data is the cost information for company A over a period for output level of 10000units; direct materials-2kg @ GHC5/kg, direct labour- 2hours @ GHC20/hour, production overheads of GHC40000, supervisors' salary amounting to GHC30000. The company also has a machine at cost of GHC100000 to be used for ten years. The accountant identifies that one-third of supervisors' salary varies with output levels whiles 60% of production overheads remains constant as output changes. Using the accounts classification method, the estimated cost function is OA. C = 54000 + 52.6x O B. C = 45000 + 44.2x OC.C = 45000 + 52.4x OD. C = 40000 + 42.6x Reset Selection

Jun 11, 2022
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