Task 1 : A-Run Co

1. Traditional method of the cost per unit product F

Material Cost per unit 40

Labour (12kzt/Hours) 12
Direct Cost 52
Production Overhead 168
Total Production cost per unit 220

2. Total Amount of maching overhead to product C for priod

3. The overhead assigned to Product F in respect of materials handling.

Total Product overhead 1,309,000

Costs relating to material handling 30%
Number of movement of material 240
Product F 24
The overhead assigned to product F 39,270

4. (d) Number of machine set up

5. (b) The cost per unit may not be as accurate as it was under traditional absorption costing.
Company Dostyq

Fixed costs 650,000

Variable cost 45%
Up to Sale level 750,000
Variable cost falls 40%

For Sale up to 650.000 the CS ratio is 55%

When sales are 750,000
The contribution is 412,500

The extra contribution 237,500

The cost ratio for sales 750.000 60%

For an extra contribution of 237.500 we need extra sales of 395,833

Therefor the total sales for breakeven is 1,145,833

 A B C
KZT per unit KZT per unit KZT per unit
Sales Price 60 54 72
Variable cost 33 36 54

FC 3,600,000
Target profit 1,200,000

q=(FC+Profit)/(Price - VC)
A B C
Ratio of seling products 5% 2% 3%

Profit for product A 600,000 Quantity 88,888.89

Fixed cost for product A 1,800,000 Sales 5,333,333

Profit for product B 240,000 Quantity 53,333.33

Fixed cost for product B 720,000 Sales 2,880,000

Profit for product C 360,000 Quantity 80,000

Fixed cost for product C 1,080,000 Sales 5,760,000

Total sales 13,973,333