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euro/per unit
selling price 45
direct material 11
direct labour 8production overheads
variable 4
fixed 3selling overheads
variable 5
fixed 2administrative overheads
fixed 3Fixed overhead cost per unit are based on normal annual activity of 96 000 units. These are expected to be incurred at a constant rate throughout the year.
January in units February in units
Sales 7000 8750
Production 8500 7750No stocks held on 1. 1. 2018
a) Absorption and marginal costing for both months?
b) Based upon Marginal costing calculate:
annual break even sales value ?
activity level in units which will yield in annual profit of 122 800 euro?See Chapter 8 of our PM notes which can be downloaded from this page https://opentuition.com/acca/pm – you will also find the relevant lectures here https://opentuition.com/acca/pm/acca-performance-management-pm-lectures
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