QUESTION 4
Flashlights manufacturer incurred the following costs in producing 60,000 flashlights in June 2016.
Direct Labor to make the flashlights RM 4 per unit
Direct Materials used RM 6 per unit
Other manufacturing costs per unit RM 1 per unit
Other manufacturing costs for June 2016 RM 234,000
Selling costs per unit RM 0.50 per unit
Selling costs for June 2016 RM 127,000
Administrative costs RM 275,000
REQUIRED:
a) Develop a cost function for the above costs.
b) Determine the total cost to produce 60,000, 50,000 and 40,000 flashlights.