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  • Variable Costing Exercise - Bitty LTD

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    Andraz
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    Variable Costing Exercise - Bitty Ltd

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    4 views1 page

    Variable Costing Exercise - Bitty LTD

    Uploaded by

    Andraz

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Bitty Ltd produce high quality fitness watches designed for runners to use with iPhone.

    The following
    information has been provided:

    • 12,000 units are produced in May.

    • 10,500 units were sold for £130 each

    • Direct Materials are £30 per unit

    • Direct Labour is £5 per unit

    • Variable Production Overheads are £7 per unit

    • Fixed Production Overheads are £300,000

    Requirement:

    A. What is the cost of 1 unit under Variable Costing?

    B. What is the contribution of 1 unit under Variable Costing?

    C. What is the total contribution under Variable Costing?

    D. What is the value of closing inventory under Variable Costing?

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