Assignment for Cost Accounting

4 Pages403 Words64 Views

Added on 2020-05-08

Assignment for Cost Accounting

Added on 2020-05-08

Related Documents

COST ACCOUNTING

1. It is mentioned in the question that due to machine breakdown the processing hours will belimited to 30000 hours. So, first we need to check that is the processing hours falling within30000 hours in the case when the company has decided to process gloss and emulsion only(Shukla, Grewal and Gupta, 2006).ParticularsHoursProcessing hours of Gloss15000Processing hours ofEmulsion12500Total time taken 27500The company can produce emulsion and gloss as the processing time is not exceeding 30,000hours.Now, let us calculate the expected profits on producing these two types of white paints basedon their demand.ParticularsGloss EmulsionNumber ofunits30005000Selling price8250001125000Less: Variablecost555000825000Contribution270000300000Less: Fixedcost165000225000Profit105000750002. As we have to select a product mix that gives Even ltd. The maximum profit is shownbelow based on the contribution per hour per unit. So the following table shows thecontribution per hour per unit:Contribution per hourParticularsGlossEmulsionUndercoatSelling price per unit275225150Variable price per unit185165100Contribution per unit906050Processing hours perunit52.52Contribution perhour182425

End of preview

Want to access all the pages? Upload your documents or become a member.