A-LevelAccountingTraditional costing methods9706/12 · May/June 2018 · Q291 Mark

The direct material cost of 20000 units is $8000. 400 direct labour hours are required at a cost of $6000. Overheads are absorbed at 150% of the cost of direct labour. What is the cost per unit?

A$0.40

B$0.70

C$0.85

D$1.15

✓ Correct answer

D: $1.15

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2018 Paper 1 Variant 2, question 29.

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