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Q1. At a production level of 5,000 units, the budgeted product cost per unit is: Direct materials $30 Direct labour $10 Fixed factory overhead $6

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Q1. At a production level of 5,000 units, the budgeted product cost per unit is: Direct materials $30 Direct labour $10 Fixed factory overhead $6 Variable factory overhead $4 Total $50 Required: Calculate the following budgeted per unit costs if expected production is 8,000 units: (a) Prime cost. 1)30=10=40. $40 (b) Conversion cost. 1)10+4+5000*6/8000=10+4+3.75=17.75 $17.75

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