Page 175 - Module DMV20173

: 160 + 200 + 35/100(160 + 200) = RM 486.00
: 486 + 20/100 (486) = RM 583.20

b) If 10% increment of sale per unit:

10/100(583.20) + 583.20 = RM 641.52

EXERCISE 10.2

300 mild steel parts fabricated with RM 3000 cost of materials and RM 800 cost of
direct labor. The overhead cost of the production is 45% of the total amount of
materials cost and direct labor cost. The fixed costs is 40% from overall cost. From
the information given, calculate:
a) overall cost;

b) if the management increased 5% of the total cost as a price per unit product,
calculate the overall costs.

Solution:

a) Overall cost = (Cost of Materials + Cost of direct labor + 45% of over head cost) +
40 % of (overall cost)

: 3000 + 800 + 45/100(3000 + 800) = RM 5510
: 5510 + 40/100 (5510) = RM 7714

b) If 5% increment of sale per unit:

5/100(7714) + 7714 = RM 8099.70