A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows: Product A£ per unit Materials Labour (£16 per hour) 6 32 Production overhead of £60,000 is absorbed on a labour-hour basis. The budgeted output is 8,000 units of product A. The company adds a mark up of 20% to total production cost in order to determine its unit selling prices. What is the selling price per unit of product A? OA£54.60 OB. OC. £19.50 £45.43 O D. £25.67

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows:
Product A £ per unit
Materials
Labour (£16 per hour)
6
32
Production overhead of £60,000 is absorbed on a labour-hour basis. The budgeted output is 8,000 units of product
A.
The company adds a mark up of 20% to total production cost in order to determine its unit selling prices.
What is the selling price per unit of product A?
OA £54.60
OB.
£19.50
OC.
£45.43
OD.
£25.67
Transcribed Image Text:A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows: Product A £ per unit Materials Labour (£16 per hour) 6 32 Production overhead of £60,000 is absorbed on a labour-hour basis. The budgeted output is 8,000 units of product A. The company adds a mark up of 20% to total production cost in order to determine its unit selling prices. What is the selling price per unit of product A? OA £54.60 OB. £19.50 OC. £45.43 OD. £25.67
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