Midlands Refrigeration estimates the costs per unit of a product as:

Raw materials	40 kg @ 2.50 per kg
Production labour	7 hours machining @ 12 per hour
	4 hours finishing @ 7 per hour

Variable production overhead @ 5 per direct labour hour.

Fixed production overhead of 1,000,000 is based on a production volume of 12,500 units.

Calculate the:

• variable production cost;
• total production cost.

Answer rating: 100% (QA)

SOLUTION To calculate the variable production cost we need to add up the costs of ... View the full answer