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Question 2Alifulhubey company produced a single product called Killi andhe provide you following 3...Question...

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Accounting

Question 2

Alifulhubey company produced a single product called Killi andhe provide you following 3 months cost data of the current year2018.

Month

Production units

Total cost (MVR)

January

1,200

66,600

February

900

58,200

March

1,400

68,200

It is assumed that Alifulhubey company variable cost per unit isconstant up to a production level of 2,000 units per month but astep up of MVR 6,000 in the monthly total fixed cost occurs whenproduction reaches 1,100 units per month.

Calculate the total cost for a month of Alifulhubey company when1,000 units are produced?

Answer & Explanation Solved by verified expert
4.1 Ratings (526 Votes)
Additional amount of fixed cost MVR 6000 is added in both January and March costs because their    See Answer
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In: AccountingQuestion 2Alifulhubey company produced a single product called Killi andhe provide you following 3...Question 2Alifulhubey company produced a single product called Killi andhe provide you following 3 months cost data of the current year2018.MonthProduction unitsTotal cost (MVR)January1,20066,600February90058,200March1,40068,200It is assumed that Alifulhubey company variable cost per unit isconstant up to a production level of 2,000 units per month but astep up of MVR 6,000 in the monthly total fixed cost occurs whenproduction reaches 1,100 units per month.Calculate the total cost for a month of Alifulhubey company when1,000 units are produced?

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