Q1. At a production level of 5,000 units, the budgeted product cost per unit is:

Direct materials	$30
Direct labour	$10
Fixed factory overhead	$6
Variable factory overhead	$4
Total	$50

Required:

Calculate the following budgeted per unit costs if expected productionis 8,000 units:

                                                             

1. Prime cost.

2. Conversion cost.

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