Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

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

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