A company had the following relevant information: Direct material per unit Rs. 8 Direct labour per unit Rs. 4 Variable manufacturing cost per unit…
BBS Cost and Management Accounting · 2080 · Solved Question with Answer
A company had the following relevant information:
Direct material per unit Rs. 8
Direct labour per unit Rs. 4
Variable manufacturing cost per unit Rs. 5
Variable selling expenses : 5% of sales
Selling price per unit : Rs. 30
Fixed manufacturing OH per unit : Rs. 5
Fixed administrative and selling expenses Rs. 72,000
Normal capacity : 30,000 units
| Year | 2076 | 2077 |
| Production Units | 25,000 | 25,000 |
| Sales Unit | 20,000 | 26,000 |
Required:
a.-Income statement under absorption costing system for year 2077
b.-Profit From variable costing system .