the manufacturing cost of 5000 units of a commodity comprises as follows material 20000 wages 25

1. Material cost: Since it increases proportionately, we can find the cost per unit and then mul

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The manufacturing cost of 5,000 units of a commodity is as follows: Material: $20,000 Wages: $25,000 Chargeable Expenses: $400 Fixed Overheads: $16,000 Variable Overheads: $4,000 For manufacturing every 1,000 extra units of the commodity, the cost increases as follows: (i) Material proportionately (ii) Wages 10% less than proportionately (iii) Chargeable Expenses: Nil (iv) Fixed Overheads: $200 extra for every 1,000 units (v) Variable Expenses: 25% less than proportionately You are required to calculate the estimated cost of manufacturing 8,000 units of that commodity.

          The manufacturing cost of 5,000 units of a commodity is as follows:
Material: $20,000
Wages: $25,000
Chargeable Expenses: $400
Fixed Overheads: $16,000
Variable Overheads: $4,000

For manufacturing every 1,000 extra units of the commodity, the cost increases as follows:
(i) Material proportionately
(ii) Wages 10% less than proportionately
(iii) Chargeable Expenses: Nil
(iv) Fixed Overheads: $200 extra for every 1,000 units
(v) Variable Expenses: 25% less than proportionately

You are required to calculate the estimated cost of manufacturing 8,000 units of that commodity.

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