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The prime cost details to the manufacture of prosuct X are as follows:
Direct material 1.3 kilogram’s (kg) at $6.20 per kg
Direct labour 0.75 hours at $8.00 per hour
Variable overheads are absorbed at a rate of $2.2 per direct labour hour. Fixed overheads, totaling $67200 per period, absorbed at a rate per unit of output based on the manufacture 14000 per period.
What is the total cost per unit of product X?
A. $19.76
B. $20.51
C. $18.86
D. $20.06Give it a go first. Material, labour and variable overheads are easy. Fixed overheads are absorbed at the predetermined as set by the budget.
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