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ourses / ACC804_S2_2021_Nasinu / My Assessments / Online Mid Semester Assessment Bula Limited launched two Bula Dress for the Fiji market, named as Cola and
ourses / ACC804_S2_2021_Nasinu / My Assessments / Online Mid Semester Assessment Bula Limited launched two Bula Dress for the Fiji market, named as Cola and Sola with the same manufacturing process. Production data is: Cola Sola Quantity produced 20 000 10 000 Material cost per unit $5 $20 on Direct labour hour per unit 0.5 hour 0.5 hour Direct labour costs per direct labour hour $18 $18 Machine hour per unit 2 hours 4 hours Manufacturing overhead costs are $420 000. Using a traditional costing model with direct labour hours as the base for allocating overheads to production, what is the full production cost per unit of Product Cola? a. $28 b. $32 c. 522 0.518
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