Carrell produces two types of jacket, Blouson and Bomber, in its factory that is divided into two departments, cutting and stitching. The firm wishes to calculate a fixed overhead cost per unit from the following budgeted data.

Cutting deptStitching dept

Allocated and apportioned overheads$120,000$72,000

Labour hours per unit

Blouson0.05 hours0.20 hours

Bomber0.10 hours0.25 hours

Budgeted production

Blouson6,000 units6,000 units

Bomber6,000 units6,000 units

If fixed overheads are absorbed by reference to labour hours, the overhead cost of aBomber would be:

a

$20.00

b

$6.67

c

$5.33

d

$12.00