Big Blue Bubble Company Produces a Product with the Following $\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array}$

question 69

Multiple Choice

Big Blue Bubble Company produces a product with the following per-unit costs:
Last year, Gateway produced and sold 750 units at a sales price of $80 each. Total selling and administrative expense was $25,000.
$\begin{array}{lr}\text { Direct materials } & \$ 15 \\\text { Direct labour } & 10 \\\text { Overhead } & 15\end{array}$
-Refer to the Figure.What was the prime cost per unit?

• A)$11
• B)$25
• C)$30
• D)$34

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Definitions:

Pharmaceuticals

Products and substances manufactured and used in the diagnosis, treatment, or prevention of diseases and medical conditions.

Continuous Flow

A production process where products move steadily and uninterruptedly through various stages of manufacturing, often aiming for efficiency and lean operation.

Raw Materials

Basic materials that are used in the production process to manufacture goods, undergoing transformation into finished products.

Customer Specifications

Detailed requirements provided by a customer regarding how a product or service should perform or be designed.