b. Please compute cost per unit of each product on the new method of allocation
Writers' Company produces 2 products presently
The information related to manufacturing is given below.
WRITERS' Company
Yr 2018-19
Fountain Pen
Ball point
Units
10000
20000
Area occupied (sq feet)
7000
8000
Variable cost – Direct
32
25
Fixed Cost - Direct (per unit)
10
8
Rent - Fixed Cost per month (Indirect
- common for all products)
3,00,000.00