Question: A company operates a normal costing system. For every 100 units of Product Bon requires $600 of direct materials and 25 hrs of direct labour

A company operates a normal costing system. For every 100 units of Product Bon requires $600 of direct materials and 25 hrs of direct labour work. Direct labour is paid at the rate of $8 per hour. Production overheads are absorbed at 20% of prime cost for 100 units of Bon and non-production overheads are absorbed at a rate of 50% of Total production cost.

Requirement

a)What is the total cost of a unit of Product Bon?

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