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QUESTION 7 A company manufactures one product (A) for which budgeted details for...

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Accounting

QUESTION 7
A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows:
\table[[,Product A per unit],[Materials,6],[Labour (16 per hour),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?
A.54.60
B.,19.50
c.,45.43
D.,25.67
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