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Okay perhaps a simpler question to get the ball rolling, I think I’ve worked out the sorting of figures into categories.
I have Total production costs (direct materials, direct labour, variable production costs and fixed production costs) of 83,000. The direct materials are 20,000, labour 50,000, variable overheads 13,000 and fixed overheads 19000.
How would i work out the additional costs of working at an additional 10% of capacity (if I’m currently working at 140%) by using marginal and absorption costing?
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