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The following cost information has been provided for a new product line. Cost per unit Direct materials $2.5 Direct labour $1.5 Variable factory overhead $

  1. The following cost information has been provided for a new product line.

Cost per unit

  • Direct materials $2.5
  • Direct labour $1.5
  • Variable factory overhead $ 3
  • Fixed factory overhead $1.5

The unit costs are based on a production of 10000 units.

If 2000 units are produced what would be the:

  1. Total prime cost
  2. Conversion cost per unit

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