Eg Question

BOH 200000 4
BLH 50000

CALCULATE COST OF JOB 101, 102

101 102
DM 200 50
DM 80 40
LBR HR 12 4

292 94

Egq

Ab limited uses % of direct wages as method of absorption

BOH
Rent 8000 Abs Rate Wag 52
Salary 7000 M N
Depreciati 6000 DM 1000 1200
Repair 5000 DW 1300 800
OH 676 416
Bud dw for the year 50000 TC 2976 2416

Calculate Cost pu of:

Prod M Prod N Prod K

 DM 1000 1200 180
DW 1300 800 150

Budg Mac hr 1500

Egq#
Budgted Production is used as the basis for absorption

BOH 150000
BLH 20000
BPROD 25000

A B C D B PROD 6
DM 200 300 250 700
DW 180 400 180 600
OH 6 6 6 6
TC 386 706 436 1306
Calculate Cpu of A,B,C,D

DE P A-BQ

A 24 24-(.2Q)

B 0.2

IF P=21

21 = 24-(.2Q)

3= .2Q

Q 15

IF Q=30
P 18
Que

MR = a-2bQ
P = a-bq
p 2650

Prof max qty >>> MC = MR

80 = MR

80 = a-2bQ

80 = 2650-(2*0.2Q)

80 = 2650-(0.4Q)

Q = 6425

DE a-bq

p 1365

Eg:

Full Cost 9.8

Full Cost 100

120

FPOH
DM 31.05 AR 12
DW 23
VOH 3.3
FPOH 55.2
OP COST 5.5

118.05

141.66
 400=10000/X

X 25

VCPU 15

SPPU 40

MARK UP % 166.6667

5
3
7

15

25.0005
K
180
150
78
408