A company manufactures two products L and M in a factory divided into two cost centres,...

 

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A company manufactures two products L and M in a factory divided into two cost centres, X and Y. The following budgeted data are available: Cost centre X $88,000 Y Allocated and apportioned fixed overhead costs $96,000 Direct labour hours per unit: Product L 1.0 Product M 3.0 2.5 2.0 Budgeted output is 8,000 units of each product. Fixed overhead costs are absorbed on a direct labour hour basis. What is the budgeted fixed overhead cost per unit for Product M? A company manufactures two products L and M in a factory divided into two cost centres, X and Y. The following budgeted data are available: Cost centre X $88,000 Y Allocated and apportioned fixed overhead costs $96,000 Direct labour hours per unit: Product L 1.0 Product M 3.0 2.5 2.0 Budgeted output is 8,000 units of each product. Fixed overhead costs are absorbed on a direct labour hour basis. What is the budgeted fixed overhead cost per unit for Product M?

Answer rating: 100% (QA)

To find the budgeted fixed overhead cost per unit for Product M we need to calculate the total fixed ... View the full answer