Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business gives the information below. Number of units produced and sold: 48000. Direct materials ($3 per kg): $298000. Direct labour ($4 per labour hour): $240000. Fixed selling costs: $150000. Variable selling costs: $24000. Fixed production overheads are absorbed at $10 per labour hour. Calculate the total absorption cost per unit.

  • A$14.83
  • B$23.71
  • C$26.83
  • D$27.33

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