The following details are provided by Trupti Engineering Ltd. with respect to their product, named as Prima: Level of activity (Units) 1,000 2,000 Cost per unit (₹) Direct materials 4.00 4.00 Direct labour 3.00 3.00 Prod

Calculation of Fixed and Variable Costs 1. Variable Production Overhead per unit: Using High-Low Method for Production Overheads: Total Production Overhead at 2,000 units = 2,000 units * ₹ 2.50 = ₹ 5,000 Total Production Overhead at 1,000 units = 1,000 units * ₹ 3.50 = ₹ 3,500 Variable Production Overhead per unit = (₹ 5,000 - ₹ 3,500) / (2,000 - 1,000) = ₹ 1,500 / 1,000 = ₹ 1.50 per unit 2. Fixed Production Overheads: Fixed Production Overheads = Total Production Overhead at 1,000 units - (Variable Production Overhead per unit * 1,000 units) = ₹ 3,500 - (₹ 1.50 * 1,000) = ₹ 3,500 - ₹ 1,500 = ₹ 2,000 3. Fixed Selling Overheads: Total Selling Overhead at 1,000 units = 1,000 units * ₹ 1.00 = ₹ 1,000 Total Selling Overhead at 2,000 units = 2,000 units * ₹ 0.50 = ₹ 1,000 Since total selling overheads are constant at both activity levels, selling overheads are entirely fixed. Fixed Selling Overheads = ₹ 1,000 4. Total Variable Cost per unit: Direct materials = ₹ 4.00 Direct labour = ₹ 3.00 Variable Production Overheads = ₹ 1.50 Variable Selling Overheads = ₹ 0 Total Variable Cost per unit = ₹ 4.00 + ₹ 3.00 + ₹ 1.50 + ₹ 0 = ₹ 8.50 per unit 5. Total Fixed Cost: Fixed Production Overheads = ₹ 2,000 Fixed Selling Overheads = ₹ 1,000 Total Fixed Cost = ₹ 2,000 + ₹ 1,000 = ₹ 3,000