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

---

Definitions:

Embryonic Membrane

Membranes such as the amnion and chorion that develop during embryogenesis to protect and nourish the embryo.

Watery Sac

A fluid-filled bladder or cyst that can form in various parts of the body, often benign.

Primitive Streak

Ectodermal ridge in the midline of the embryonic disk, from which arises the mesoderm by the inward and then lateral migration of cells.

Epiblast Cells

Cells in the early embryo that give rise to the tissues of the body.