A company manufactures two products P1 and P2 in a factory divided into two cost centres, X and Y. The following budgeted data are available:

Budgeting output is 8000 units of each product. Fixed overhead costs are absorbed on a direct labour hour basis.
What is the budgeted fixed overhead cost per unit for Product P2?

(a) £10

(b) £11

(c) £12

(d) £13 (2 marks)
CIMA P17 Performance Operations

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Allocated and apportioned fixed overhead costs Direct labour hours per unit: Product P1 Product P2 Cost centre X Y 88000 96000 3.0 1.0 2.5 2.0