Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business has supplied the budgeted data shown below. Production and sales were expected to total $5000$ units. selling price per unit: $\$80$ variable cost per unit: - direct materials ($2\ \text{kg}$): $\$10$ - direct labour ($5$ hours): $\$35$ Fixed overheads of $\$75000$ will be absorbed using direct labour hours as the basis. What is the budgeted profit per unit?

  • A$\$20.00$
  • B$\$28.00$
  • C$\$32.00$
  • D$\$35.00$

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