Consider the following data from the records of Monkey Co.:

Units produced 20,000

Manufacturing cost incurred (per unit): Cost incurred to rework (per unit):

Direct materials P5 Direct materials P2

Direct labor 7 Direct labor 3

Overhead cost 6 Overhead cost 2

Defective units 500 units

Spoiled units 300 units

Sales value of spoiled goods P10

What would be the unit cost of good units, assuming both the defect and spoilage were both attributable to exacting specifications? use to decimal places example 10.32.

Answer rating: 100% (QA)

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