A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2010 · Q271 Mark

A factory produces a product with a variable cost of $0.60 per unit. Fixed costs are $15 000 per quarter, including rent of $6000 per quarter. If more than 20 000 units are made per quarter, additional space is required which increases the rent by 50%. What is the total cost per unit of producing 30 000 units in a quarter?

A$0.60

B$0.90

C$1.10

D$1.20

✓ Correct answer

D: $1.20

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2010 Paper 1 Variant 2, question 27.

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