Answer in Accounting for Prashant Kumar #152276
Total variable cost = “variable cost per unit times units” = “Rs 32times 10000 units” = “Rs 320,000”
Total fixed cost = “fixed cost per unit times units = Rs 10 times 10000 units = Rs 100,000”
Total Fountain’s rent =
Total products’ units = 10000 + 20000 = 30000
Total Fountain’s rent = “frac{10000}{30000} times Rs 300,000 = Rs 100,000”
Total cost = total variable cost + total fixed cost + total rent
= Rs 320,000 + Rs 100,000 + Rs 100,000
= Rs 520,000
Cost per unit = “frac{Total cost}{total units} = frac{ Rs 520,000}{10000 units } =Rs 52”
Pen ball point’s cost per unit
Total variable cost = “variable cost per unit times tunits = Rs 25 times 20000 units = Rs 500,000”
“Total fixed cost = fixed cost per unit times units = Rs 8 times 20000 units = Rs 160,000”
Total Pen ball point’s rent =
“frac{ Pen ball pointu2019s units }{ total productsu2019 units } times the total fixed indirect cost of rent”
Total products’ units = 10000 + 20000 = 30000
Total Pen ball point’s rent = “frac{ 20000}{ 30000} times Rs 300,000 = Rs 200,000”
Total cost = total variable cost + total fixed cost + total rent
= Rs 500,000 + Rs 160,000 + Rs 200,000
= Rs 860,000
“Cost per unit = frac{Total cost }{ total units } = frac{ Rs 860,000}{ 20000 units } = Rs 43”
