Management Accounting for Engineers Lecture 5

Attribute	$70\%$	$90\%$
Power
Variable	12250	15750
Fixed	6000	6000
Total	18250	21750
Repairs
Variable	700	900
Fixed	1200	1200
Total	1900	2100

Question 2

	50% capacity(10000 units)		60% capacity(11000 units)		80% capacity(15000 units)
	Per Unit	Rs.	Per Unit	Rs.	Per unit	Rs.
Sales	200	₹ 2,000,000.00	196	₹ 2,352,000.00	190	₹ 3,040,000.00
Variable Cost
Direct Materials	100	₹ 1,000,000.00	102	₹ 1,224,000.00	105	₹ 1,680,000.00
Direct Labour	30	₹ 300,000.00	30.9	₹ 370,800.00	31.2	₹ 499,200.00
Variable Overheads
Factory Overheads	18	₹ 180,000.00	18	₹ 216,000.00	18	₹ 288,000.00
Administration Overheads	10	₹ 100,000.00	10	₹ 120,000.00	10	₹ 160,000.00
Total Variable Costs	158	₹ 1,580,000.00	160.9	₹ 1,930,800.00	164.2	₹ 2,627,200.00
Fixed Costs
Factory	12	₹ 120,000.00	10	₹ 120,000.00	7.5	₹ 120,000.00
Administration	10	₹ 100,000.00	8.33	₹ 99,960.00	6.25	₹ 100,000.00
Total Fixed Costs	22	220000	18.33	219960	13.75	₹ 220,000.00
Total Cost	180	1800000	179.23	2150760	177.95	₹ 2,847,200.00
Profit (A-E)	20	200000	16.77	201240	12.05	₹ 192,800.00

	50% capacity(10000 units)		60% capacity(11000 units)		80% capacity(15000 units)
	Per Unit	Rs.	Per Unit	Rs.	Per unit	Rs.
Sales	200	2000000	196	2352000	190	3040000
Variable Cost
Direct Materials	100	1000000	102	1224000	105	1680000
Direct Labour	30	300000	30.9	370800	31.2	499200
Variable Overheads
Factory Overheads	18	180000	18	216000	18	288000
	10		10	120000	10	160000
	158		160.9	1930800	164.2	2627200

References

Information

• date: 2025.03.04
• time: 10:16