Page 32 - BA2 Integrated Workbook STUDENT 2018
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Chapter 2
2.4 The total cost of a cost object
We can use these classifications to calculate the total (or full) cost of a cost object.
The following shows the calculation of the cost for one unit of product X.
$
Production costs:
Direct material 20
Direct labour 10
Direct expenses 15
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PRIME COST 45
Indirect material 10
Indirect labour 2
Indirect expenses 11
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TOTAL PRODUCTION OVERHEAD 23
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TOTAL PRODUCTION COST 68
Non-production costs:
Selling and distribution 12
Administration 10
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TOTAL COST 90
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Illustrations and further practice
Now try TYU 2/TYU 3
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