A Highly Automated Process Is Used to Make Tins of Paint

question 7

Multiple Choice

A highly automated process is used to make tins of paint. It has a budgeted overhead of £40,000, taking 1,250 machine hours and 500 direct labour hours. Each can of paint uses £12 of direct materials, 0.1 labour hours at £4 per hour and 0.2 machine hours. The most appropriate calculation of the total cost of each tin of paint would be:

• A) £15.60
• B) £28.40
• C) £18.80
• D) £20.40

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