For 20000 units, the direct material cost is $8000. Direct labour takes 400 hours and costs $6000. Overheads are absorbed at 150% of the cost of direct labour. What is the cost per unit?
- A$0.40
- B$0.70
- C$0.85
- D$1.15
Accounting 9706 · AS & A Level · Traditional costing methods
For 20000 units, the direct material cost is $8000. Direct labour takes 400 hours and costs $6000. Overheads are absorbed at 150% of the cost of direct labour. What is the cost per unit?