[whatevaman511]

I’m assuming the opening stock won’t count here.

Total prod cost = 200,000 (Dm+CC+ClosingC)

Total sales
W: 20,000 x 4 = 80,000
X: 20,000 x 6 = 120,000
Z: 40,000 x 3 = 120,000
Total = 320,000

Cost per unit
W: 80,000/320,000 x 200,000 = 50,000
50,000/20,000 = 2.5 per unit

X: 120,000/320,000 x 200,000 = 75,000
75,000/20,000 = 3.75 per unit

Z: 120,000/320,000 x 200,000 = 75,000
75,000/40,000 = 1.88 per unit.

The sales units are not considered.
Please correct me if I’m wrong.
Thanks

[whatevaman511]

Hello, I can’t seem to get this right. Please help.
What i have done is, multiply 2.5hr by 8000units = 20,000
I then divided 88,000/20,000 = 4.4
I multiplied 4.4 by 2.5 = 11
The correct answer according to the notes is D=13.
What am I doing wrong please.
Original question below.

A company manufactures two products P1 and P2 in a factory divided into two cost centres, X and Y. The following budgeted data are available:
Allocated and apportioned fixed overhead costs Direct labour hours per unit: Product P1
Product P2
Cost centre XY
£88,000 £96,000
3·0 1·0 2·5 2·0
Budgeted output is 8,000 units of each product. Fixed overhead costs are absorbed on a direct labour hour basis.
What is the budgeted fixed overhead cost per unit for Product P2?
A £10 C £12 B £11 D £13

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