Page 480 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 18

Example 2

A company produced 3,000 units of their only product in the last period. The
unit costs of the product were:

$

Direct material 20
Direct labour 15

Variable production overhead 8
Fixed production overhead 11
–––

Standard production cost 54

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The sales for the period were 2,500 units at $85 per unit.
There were 50 units of opening inventory.

The fixed production overhead incurred in the last period was $30,000
Selling, distribution and administration expenses in the period are:

Fixed $5,000
Variable 10% of sales value

472