Using the Following Information Calculate the Product Cost Per Unit

question 36

Multiple Choice

Using the following information calculate the product cost per unit.
Direct labour per unit $40
Direct materials per unit $55
Factory overhead applied at 25% of direct labour cost

• A) $95
• B) $108
• C) $125
• D) $105

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Definitions:

Timber

Describes wood that has been processed into beams and planks, a stage in the process of wood production.

Boreal Forests

Vast forests located in the northern regions, characterized by coniferous trees and long winters, forming one of the world's largest biome types.

Sustainable

Refers to practices and resources that can be maintained for the long term without depleting natural resources or harming the environment.

Biodiversity

The variety of living organisms considered at three levels: genetic diversity, species diversity, and ecosystem diversity. Also called biological diversity.