A-LevelAccountingTraditional costing methods9706/12 · May/June 2010 · Q241 Mark

A soup manufacturer uses batch costing. It produces a batch of 10 000 tins of soup with a direct materials cost of $2500. Direct labour involved 200 hours at a cost of $2000, and overheads are absorbed at the rate of $15 per direct labour hour. What is the cost of a tin of soup?

A$0.25

B$0.45

C$0.55

D$0.75

✓ Correct answer

D: $0.75

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2010 Paper 1 Variant 2, question 24.

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