Ali Baba Ltd uses absorption costing to allocate overheads to its three products X, Y and Z. Overheads are absorbed into products on machine hour basis. Total production overheads for the period are 720,000. Direct labour cost is 8 per hour. The Table below gives the data relating to the individual products;

Velma Valhalla Limited produces a single product. The companys management accountant has budgeted the following totals in respect of the coming years production:

Direct labour 1,350,770

Direct materials 950,250

Production overheads 1,850,795

Machine hours 860,000

Units of production 430,000

An estimated overhead absorption rate for Velma Valhalla based on units of production is (to nearest penny):

Select the correct answer from the options below.

	a.	0.10
	b.	4.30
	c.	9.66
	d.	0.23

Overheads absorption rate is 20 per hour.

What is the total cost for one unit of X?

		66
		58
		10
		19