What is the absorption cost per unit

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Reference no: EM131044112

A budget was estimated by a company for producing 500 C's and 300 D's for the coming year. D's usually take twice the timing to be made as it takes for C's.

Expected total fixed overheads are 102,000

Cost relating to C's are as such:

Material. 3000Kg. $24,000

Labor. 2000 hours. $40,000

Fixed overhead are to be absorbed on an hourly basis. Some of the material goes to waste which is estimated to be about 10% of the material purchased.

What is the absorption cost per unit of C?

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Reference no: EM131044112

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