PMKaplan Revision Kit – Sep 2016 exam qn (Helot Co) – Pg 83 (Sec B)

Production costs per unit $ Direct material 3.00 Direct labour 2.50 Direct machining 5.05 Set-up 0.45 Inspection and testing 4.30 Total non-production costs $000 Design (salaries and technology) 2,500 Marketing consultants 1,700 Distribution 1,400 Add all production costs to arrive at 15.3 Add all non prod. cost to arrive at 16 (5600000/350000) Total unit cost is therefore 31.3

Thanks a lot.

Thanks a lot.