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- September 27, 2023 at 6:47 am #692560
Total fixed cost is 18000.
cuz,
12=variable cost + 20% variable cost.
12=1.2vc
so, vc here is 12/1.2=10.
selling price – total cost = profit.
here profit is -8000.
so, total cost is (5000*12)- total cost = -8000.
68000 is total cost.
68000/5000=13.6.
in this we know that 10 is variable cost and the rest of 3.6 is fixed cost per unit.
muliply it with total unit 5000 will give u an answer of 18000.September 27, 2023 at 6:11 am #692559Total fixed production cost=13122+7920+2988=24030
120 units takes 1 hour, so we are having 216000.
so, it takes 1800 hours, cuz, 216000/120.
so now u have got hours and total production overhead.
24030/1800=13.35$/machine hour is the OAR per machine hour here. - AuthorPosts
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