Costing

1.       Cost of Abnormal Wastage = Normal cost ÷ Normal output x Abnormal Wastage inn units 2.       Cost of Abnormal

Economic batch Quantity: 1.       EOQ = √ 2AB / CS A = Annual consumption in units               B = Buying

[wp_ad_camp_1] Factory Overhead Rate: (i) Direct Material Cost Method =Amount of Factory Overheads ÷ Cost of Direct materials used x

          Maximum Level Maximum Level = Re-order level + Re-order quantity – (Minimum consumption x Minimum Re-order