Please can you explain what does it mean Product X$ per unit Y $ per unit Z $ per unit Direct materials 25 28 22 Direct labour ($12 per hour) 30 36 24 According to my understanding it should be that X uses $25 per unit of material and $30 is paid for labour per unit so what is $ 12 per hour .
I guess that’s a bit silly question but i am stuck in to it. Kindly help me in to this.
If the labour is $30 per unit, and labour is paid at the rate of $12 per hour, then it means that each unit must be taking 30/12 = 2.5 hours to produce.