Material 12 Direct Labour 8 Variable production cost 4 Fixed production costs 480,000 per month. There is no opening stock and it is company policy to absorb fixed overheads on the basis of direct labour cost. Amerada produces a product for the Petrochemical market. The following information is given on that product. Direct material cost.
Direct wages cost.
Direct labour efficiency. ANS Computers has two projects that it can undertake. Each project is expected to be in operation for 4 years. At the end of the 4 year period each project will have a scrap value of 10,000. Capital expenditure for both projects would be incurred immediately.