URGENT I WILL VOTE

Bobbles Hairbrush, Inc. is in the process of setting standard unit costs for next period. A standard batch of 10 Ambassador Hairbrushes uses 8 kg of Ebony and 4 kg of Nylon, at a standard price of $5 per kg and $10 per kg respectively.

To make a batch requires 5 hours of direct labour, at a cost of $20 per hour.

Production overheads are to be recovered at the rate of $6 per direct labour hour, and general overhead is to be absorbed at a rate of ten per cent of production cost.

What is the standard prime cost for one Ambassador hairbrush?

1. $18
2. $24
3. $25

d. $180