A company manufactures two products P1 and P2 in a factory divided into two cost centres, X
Question:
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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