Toshi Company Incurred the Following Costs in Manufacturing Desk Calculators

question 35

Multiple Choice

Toshi Company incurred the following costs in manufacturing desk calculators: $\begin{array}{lr}\text { Direct materials } & £ 14 \\\text { Indirect materials (variable) } & 4 \\\text { Direct labour } & 8 \\\text { Indirect labour (variable) } & 6 \\\text { Other variable factory overhead } & 10 \\\text { Fixed factory overhead } & 28 \\\text { Variable selling expenses } & 20 \\\text { Fixed selling expenses } & 14\end{array}$ During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using absorption costing?

• A)£104
• B)£70
• C)£84
• D)£32

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