good day could you help me with 7 september 2016 multiple choice question 27 cost gap estimated cost 31.30. i add the production cost total 15.30 but they got 31.30 how to arrive at that figure

You have to add on the non-production costs as well. The total of the non-production costs is $5,600,000. Divide by the production of 350,000 units and this gives an additional $16 per unit.

Thank you very much for all efforts for Q15 I divided materidl on 10/30 and labour 5/25 .. I did not understand why we should do else by using 50 thanks again

But for material, the 10 and the 20 are per unit. We need the total material and so they both need multiplying by the number of units to get the total.

Same idea for labour.

(Have you watched my free lectures on ABC? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.)

melindap says

good day could you help me with 7 september 2016 multiple choice question 27 cost gap estimated cost 31.30. i add the production cost total 15.30 but they got 31.30 how to arrive at that figure

John Moffat says

You have to add on the non-production costs as well. The total of the non-production costs is $5,600,000. Divide by the production of 350,000 units and this gives an additional $16 per unit.

jihane says

Thank you very much for all efforts

for Q15 I divided materidl on 10/30 and labour 5/25 .. I did not understand why we should do else by using 50

thanks again

John Moffat says

But for material, the 10 and the 20 are per unit. We need the total material and so they both need multiplying by the number of units to get the total.

Same idea for labour.

(Have you watched my free lectures on ABC? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.)