Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Marginal cost is computed as
A. Prime cost + All Variable overheads
B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads
D. All of the above
by

1 Answer

Answer :

A. Prime cost + All Variable overheads
by

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Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B? (a) Rs. 6562.50 (b) Rs. 12,250.00 (c) Rs. 14,437.50 (d) Rs. 25,375.00

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Prime cost is equal to - (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

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