A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2025 · Q241 Mark

A factory produces 1100 units per day. Daily machinery set-up costs are $2000. Direct material cost per unit is $3. Machine operators are paid $400 per day. Each can produce a maximum of 200 units per day. What is the average cost per unit?

A$5.00

B$5.18

C$6.82

D$7.00

✓ Correct answer

D: $7.00

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2025 Paper 1 Variant 2, question 24.

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