task 1.4 sample assessment 1

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darren100
darren100 Registered Posts: 17
in Management Accounting: Decisions and Control



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

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  • lishmh53
    lishmh53 Registered Posts: 2 New contributor 🐸
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    Is it (£10 + £15) x 10,000 units produced = £250,000 +£250,000 variable production costs.

    So £500,000
  • darren100
    darren100 Registered Posts: 17
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    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.

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