A company which makes only one type of product incurs fixed production overheads of 240,000 during the

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A company which makes only one type of product incurs fixed production overheads of £240,000 during the year to 31 March 2024. Normal production capacity is 80,000 units per annum. Calculate the amount of fixed production overheads that should be allocated to each unit of production when determining the cost of inventories at 31 March 2024 if actual production for the year is:

(a) 80,000 units 

(b) 100,000 units 

(c) 50,000 units.

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