Question

Q1. At a production level of 5,000 units, the budgeted product cost per unit is: Direct...

Q1. At a production level of 5,000 units, the budgeted product cost per unit is:

Direct materials

$30

Direct labour

$10

Fixed factory overhead

$6

Variable factory overhead

$4

Total

$50

Required:

Calculate the following budgeted per unit costs if expected productionis 8,000 units:

                                                             

  1. Prime cost.

  1. Conversion cost.
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