Phonick Ltd. accepted an order to supply 2,000 units per month of Product 'E' for the third quarter of the year. Each monthly batch order records…

Statement of Cost and Profit per unit of each batch order October November December Total a) Batch Output (Nos.) 2,500 3,000 2,000 7,500 b) Sales Value (@15 per unit) 37,500 45,000 30,000 1,12,500 Cost Material 12,500 18,000 10,000 40,500 Wages 5,000 6,000 4,000 15,000 Overheads (working note) 7,500 6,000 6,000 19,500 c) Total 25,000 30,000 20,000 75,000 d) Profit per batch (b) - (c) 12,500 15,000 10,000 37,500 e) Cost per unit (c) ÷ (a) 10 10 10 f) Profit per unit (d) ÷ (a) 5 5 5 Overall Position of the Order for 6,000 Units Particulars Amount (₹) Sales value (6,000 units × ₹ 15) 90,000 Less: Total cost (6,000 units × ₹ 10) 60,000 Profit 30,000 Working Note: Calculation of overhead per hour Particulars October November December i. Labour hours: Labour cost 5,000 6,000 4,000 Labour rates per hour 2 2 2 = 2,500 hrs. = 3,000 hrs. = 2,000 hrs. ii. Overhead per hour: Total Overheads 24,000 18,000 30,000 Total labour hour 8,000 hrs. 9,000 hrs. 10,000 hrs. = 3 = 2 = 3 iii. Overhead for the batch (i) x (ii) 7,500 6,000 6,000