COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RM1, 040 UF
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RM1, 840 F
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RM1, 040 F
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RM1, 840 UF
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Detailed explanation-1: -To find the unit cost, one would use the unit cost formula. The unit cost formula is: Cost per unit = variable cost + fixed costs / total units produced.
Detailed explanation-2: -(i) Production will increase due to recruitment of 60% more workers in the factory. (ii) Overall efficiency will decline by 10% on account of recruitment of new workers (iii) There will be an increase of 20% in Fixed overhead and 60% in Variable overhead. (iv) The cost of direct material will be decreased by 6%.
Detailed explanation-3: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)
Detailed explanation-4: -It consists of three main expenses: raw materials, direct labor, and overhead. These costs may be fixed (most overhead) or variable (raw materials and labor). The total product cost formula is Total Product Cost = Cost of Raw Materials + Cost of Direct Labor + Cost of Overhead.