Question

In a month, we have 30 days and each day we produce 100units. The required data can be given as below:Administration cost: $3,000 per monthMaterial Cost (30% is indirect): $12,000 per monthAdvertising cost: $4,000 per monthLabour Cost (40% is indirect): $10,000 per monthInsurance Costof furniture in the MarketingDepartment: $20,000 per monthResearch Expense: $50 per monthRepairing Cost: $100 per monthMaintenance Cost: $75 per monthElectricity cost: $50per dayRequired: Please calculate cost of a single product?

Answer 1

calculate cost of a single product
Particulars
No.of Days in a month	A	30
No.of Products produced in a day	B	100
No.of Products produced in a month	C = (A*B)	3000
Variable Costs		per Month $
Direct Material 12000 @70% $		8400
Direct Labour Costs $ 10000*60%		6000
Total Variable Costs per month	D	14400
Fixed Costs
Admistration Costs $		3000
Indirect Material 12000 @30% $		3600
Advertising Costs $		4000
Indirect Labour Costs $ 10000*40%		4000
Insurance Costof furniture in the MarketingDepartment $		20000
Research Expense $		50
Repairing Cost $		100
Maintenance Cost $		75
Electricity cost $ 50 per day (50*30		1500
Total Fixed Costs per month	E	36325
Total Costs Per Month of 3000 units	F= (D+E)	50725
Cost of a Single Product $	G= (F/C)	16.908