task 1.4 sample assessment 1

darren100

Does anyone know how i work out production costs for this someone did try and explain it in another post but i am not sure i understand where they got the costs from

lishmh53

Is it (£10 + £15) x 10,000 units produced = £250,000 +£250,000 variable production costs.

So £500,000

darren100

This is now solved and lishmh53 the answers are Absorption cost = £15 + £10 + £250,000/10,000 + £450,000/10,000 = £95 per unit x 10000 units = £950,000 for marginal costing don't include the £450,000 fixed overheads.