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Fabio Limited makes three products in a period. Quantity (units) Labour hours per unit Product A 1,000 4 Product B 2,000 5 Product C 3,000

Fabio Limited makes three products in a period.

Quantity (units) Labour hours per unit

Product A 1,000 4

Product B 2,000 5

Product C 3,000 3

Total 6,000

Overheads for the period are 30,000 and they are absorbed on the basis of labour hours.

What is the fixed overhead cost absorbed by a unit of Product B?

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