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Essay Details:
Essay text:
Variable cost (VC), Fixed Cost (FC), Total Cost = VC+FC
Total Cost Fixed Cost Total Cost
? 000s ? 000s Per Unit
Direct Materials 500 500/500=1
Direct Labour 600 600/500=1.2
Direct Overheads 300 300/500=0.6
Administration 250 200 50/500=0.1
FC=200
VC= 50
General Expenses 750 500 250/500=0.5
FC=500
VC=250
Others 150 100 50/500=0.1
FC=100
VC= 50
__________ _________
Total 2550 800
FOR NEXT YEAR BUDGET FOR 600,000 DONGLES.
Per Unit x Required Units
Total Cost Fixed Cost
?000s ?000s
Direct Materials 600=1x600
Direct Labour 720=1.2x600
Direct Overhead 360=0.6x600
Administration 260 200
FC=200
VC= 60
General Expenses 800 500
FC=500
VC=300
Others 160 100
FC=100
VC= 60
____________ _____________
Total 2900 800
For Next year Budget for 600,000 Dongles
The total cost is 2900 and fixed cost is 800...
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