Can somebody please solve this for me?
14. A company produces two product lines, as follows;
Product X Product Y
Units produced 5,000 4,000
Labour cost per unit (£10/HR) £20 £30
Material cost per unit £25 £48
Assuming that the overheads for the period total £165,000 and are absorbed on the basis of labour time, what would be the full unit cost of one unit of product X?
a. £60
b. £63.33
c. £45
d. £48.33
e. £50
My answer comes out at 58.2, which is not represented on the list.
£165,000/5(Total hours) = £33k/hr
£33k*2(Product X) = £66k
£66k/5,000(units) = £13.2 per unit
£13.2 + £20 + £25 = £58.2...
What am I doing wrong? Thanks.
14. A company produces two product lines, as follows;
Product X Product Y
Units produced 5,000 4,000
Labour cost per unit (£10/HR) £20 £30
Material cost per unit £25 £48
Assuming that the overheads for the period total £165,000 and are absorbed on the basis of labour time, what would be the full unit cost of one unit of product X?
a. £60
b. £63.33
c. £45
d. £48.33
e. £50
My answer comes out at 58.2, which is not represented on the list.
£165,000/5(Total hours) = £33k/hr
£33k*2(Product X) = £66k
£66k/5,000(units) = £13.2 per unit
£13.2 + £20 + £25 = £58.2...
What am I doing wrong? Thanks.