Question
The following data should be used for questions 19 and 20 Toytown Ltd. has collected the following information: Product Brick: Prime cost per unit 5;
The following data should be used for questions 19 and 20
Toytown Ltd. has collected the following information:
Product Brick: Prime cost per unit 5; volume of output is 20,000 units; requires 0.5 labour hour per unit; and 15% of all units produced must be inspected. Product Block: Prime cost per unit 6; volume of output is 40,000 units; requires 0.25 labour hour per unit; and 10% of all units produced must be inspected
Activities and their associated cost driver rates have been calculated as follows:
Activity
Assembly Inspection
Cost Driver Rate
3 per labour hour 1 per inspection
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7
19.Calculate cost per unit of Product Brick:
a) 9.00 b) 1.50 c) 1.65 d) 6.65
20.Calculate the total cost of all units of Product Block:
a) 274,000 b) 34,000 c) 270,000 d) 400,000
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