Case study 2 Zubi Pty Ltd prepared a summary showing the following expected costs for a production level of 50,000 units:
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Question

Case study 2


Zubi Pty Ltd prepared a summary showing the following expected

costs for a production level of 50,000 units:


Direct labour

$ 80,000

Fixed manufacturing overhead

60,000

Fixed selling and administration

110,000

Variable manufacturing overhead

30,000

Variable manufacturing

250,000

Variable selling

70,000

Zubi Pty Ltd accounts for all manufacturing costs as inventoriable (product) costs.


Task 2


Calculate the following TOTAL costs:

a.      Conversion cost             

b.      Product cost   

c.      Prime cost       

d.      Period cost

e.      Expected manufacturing overhead cost for a production level of 60,000 units.

 

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