The cost per unit of product A
STEP 1
Calculate total cost of the product A .
ie,
Total cost÷cost × product A
Activity 1
38295/690*170=9435
Activity 2
61125/1250*930=45477
Activity 3
1,23,540/4260*880=25520
So the total cost of the product A
=9435 + 45477 + 25520
=80,432
Step 2
The annual production and sale of product A = 7000
Cost per unit = 80432/7000
=11.49
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