Cost sheet for (units) 10

Total CPU
Direct Material (2 Kgs @ 100) 200 20
Direct Labour (5 hours @ 50) 250 25
Direct Expense ( (royalty) Rs. 50 @ ma 100 10
Prime cost 550 55
Manufacturing Overhead 500 50
Product cost 1050 105
Non-manufacturing overheads 400 40
Total cost 1450 145
Different Absorption Rates
AbR
on the basis of output
MO/units 50

on the basis of input

LhR 100
labour hours 5
MO 500

MhR 250
Machine hour 2
MO 500

As % of Prime cost 91%

PC 550
MO 500
 Income statement for the month Cost sheetfor
Sales (4000 units @ 330) 1,320,000
less Prime Cost
Cost of material 300,000 MO
Wages 200,000 Product Cost
Factory expenses 350,000 NMO
Salary (Office) 160,000 Total cost
Rent (office) 90,000 Sales
1,100,000 Profit
Profit 220,000 ROS
ROC
units produced 4000
A 1000 Abr
B 3000
SP 330 MO
ROS 17% NMO

Mhr
MO
Total Mhours

M hours
A
B
Cost sheetfor 4000 Cost sheet: Single ABR: based on output
TC CPU A B
500,000 125 units 1,000 3,000
350,000 87.5 Prime Cost 125,000 375,000
850,000 213 MO 87,500 262,500
250,000 62.5 Product Cost 212,500 637,500
1,100,000 275 NMO 62,500 187,500
1,320,000 330 Total cost 275,000 825,000
220,000 55 Sales 330,000 990,000
17% Profit 55,000 165,000
20% ROS 17% 17%
ROC 20% 20%
CPU 275 275

87.5 Cost sheet: Double ABR. MO on Mhr and NMO on output

62.5 A B
units 1,000 3,000
350 Prime Cost 125,000 375,000
350000 MO 210,000 140,000
1000 Product Cost 335,000 515,000
NMO 62,500 187,500
Total cost 397,500 702,500
600 Sales 330,000 990,000
400 Profit -67,500 287,500
ROS -20% 29%
ROC -17% 41%

CPU 398 234

Revised Price 477 281

ed on output
Total
4,000
500,000
350,000
850,000
250,000
1,100,000
1,320,000
220,000

r and NMO on output

Total
4,000
500,000
350,000
850,000
250,000
1,100,000
1,320,000
220,000