SUBJECT NAME IS COST ACCOUNT.

ANSWER THE FOLLOWING QUESTION CORRECTLY

Global limited provides the following budgeted information for the month of January and February.

Selling price per unit $12, Variable cost per unit $5. There is no opening inventory in January. Production is expected to be 54000 units for the year.

Particulars January $ February $

Fixed production overheads 9000 9000

Fixed administrative costs 800 800

Units Units

Sales 3600 5400

Production 4500 4500

Calculate the production overhead absorption rate per unit.