Question

Question: Estimate average cost per unit as per life cycle costing Period Estimated production (units) Fixed cost per annum (AED) Variable cost @ AED 2 (AED) Total cost (AED) Cost per unit (AED) 1 12,000 60,000 24,000 84,000 7.00 2 18,000 60,000 36,000 96,000 5.33 3 80,000 60,000 1,60,000 2,20,000 2.75 4 25,000 60,000 50,000 1,10,000 4.40 5 8,000 60,000 16,000 76,000 9.50

          Question: Estimate average cost per unit as per life cycle costing
Period
Estimated
production
(units)
Fixed cost
per annum
(AED)
Variable cost
@ AED 2
(AED)
Total cost
(AED)
Cost per unit
(AED)
1
12,000
60,000
24,000
84,000
7.00
2
18,000
60,000
36,000
96,000
5.33
3
80,000
60,000
1,60,000
2,20,000
2.75
4
25,000
60,000
50,000
1,10,000
4.40
5
8,000
60,000
16,000
76,000
9.50

Question: Estimate average cost per unit as per life cycle costing
Period
Estimated
production
(units)
Fixed cost
per annum
(AED)
Variable cost
@ AED 2
(AED)
Total cost
(AED)
Cost per unit
(AED)
1
12,000
60,000
24,000
84,000
7.00
2
18,000
60,000
36,000
96,000
5.33
3
80,000
60,000
1,60,000
2,20,000
2.75
4
25,000
60,000
50,000
1,10,000
4.40
5
8,000
60,000
16,000
76,000
9.50

Added by Marc V.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manuel Vasquez

05/24/2023

Step 1

Step 1: Calculate the total cost per unit for each period by adding the fixed cost per annum and the variable cost, and then dividing by the estimated production. Show more…

Show all steps

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Please I need help in this question.Answer as soon as possible.Thank You. Question: Estimate average cost per unit as per life cycle costing Period Estimated production (units) Fixed cost per annum (AED) Variable cost @AED2 (AED) Total cost (AED) Cost perunit (AED) 1 12,000 60,000 24,000 84,000 7.00 2 18,000 60,000 36,000 96,000 5.33 3 80,000 60,000 1,60,000 2,20,000 2.75 4 25,000 60,000 50,000 1,10,000 4.40 5 8,000 60,000 16,000 76,000 9.50