Handy Ltd Produces a Line of Brooms The Level of Output for the Period Was the Normal

question 3

Multiple Choice

Handy Ltd produces a line of brooms.The summary cost information for brooms for the year ended 30 June 2012 is:
$$\begin{array} { | l | r | } \hline \text { Item of expenditure } & \$ 000 \\\hline \text { Advertising } & 500 \\\hline \text { Depreciation-factory equipment } & 100 \\\hline \text { Depreciation-administrative building } & 21 \\\hline \text { Interest expense } & 16 \\\hline \text { Salaries-factory personnel } & 120 \\\hline \text { Salaries-administration and marketing } & 80 \\\hline \text { Rent-factory } & 110 \\\hline \text { Raw materials } & 250 \\\hline\end{array}$$
The level of output for the period was the normal level of production of 290 000 units.What is the cost per broom (rounded to the nearest cent) in accordance with AASB 102 requirements?

• A) $4.13
• B) $2.00
• C) $0.13
• D) $2.06

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