COST ACCOUNTING 9TH EDITION of 16 Exercise 2.3 3. Direct Material $ 32 Direct Labour $ 20 Variable Factory overhead $ 15 Variable marketing $ 3 Total Variable Cost $ 70 4) Compute the total cost that would be incurred during a month with a production level of a) 12000 Units Cost Item Estimated Unit Cost Total Cost Direct Material $ 32 384000 Direct Labour $ 20 240000 Variable Factory overhead $ 15 180000 Fixed factory Over head $ 6 72000 Total Cost $ 73 876000 b) Sale Level of 8000 Units Cost Item Estimated Unit Cost Total Cost Direct Material $ 32 256000 Direct Labour $ 20 160000 Variable Factory overhead $ 15 120000 Fixed factory Over head $ 6 48000 Variable marketing $ 3 24000 Fixed marketing $ 4 32000 Total Cost $ 80 640000 Exercise 2.2 The Mercaldo Company Income Statement For the Period ended on 31st December, 19B Sales 1995000 X85%= 16957500 Less Cost of Sales Variable Cost 11571000 X 85%= 9835350 Fixed Cost = 7623000 Total Cost of Sales 17458350 Loss for the Year (500850) Direct Material $ 32 Direct Labour $ 20 $ 52 3) Determine the estimated total varialbe cost per unit. Direct Labour $ 20 Variable Factory overhead $ 15 Fixed Factory Overhead $ 6 $ 41 2) Identify the estimated Prime Cost per unit. COST ACCOUNTING 9TH EDITION of 16 CHAPTER 2 EXERCISES Exercise 2.1 1) Identify the estimated conversion cost per unit. COST ACCOUNTING 9TH EDITION of 16 MUHAMMAD SHAHID MBA (FINANCE) UOS Digitally signed by Muhammad Shahid DN: CN = Muhammad Shahid, C = US, O = 3S Inc Location: Sargodha Date: 2008.05.16 07:42:29 +0500