What is the factory costs per hour

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Question - A company manufactures a product which requires four hours per unit of machine time. Machine time is a bottleneck resource as there are only ten machines which are available for 12 hours per day, five days per week. The product has a selling price of N$130 per unit, direct material costs of N$50 per unit, labour costs of N$40 per unit and factory overhead costs of N$20 per unit. These costs are based on weekly production and sales of 150 units. What is the Factory costs per hour?

Reference no: EM133019122

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