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Bula limited launched two Bula Dress for the market,named Cola and Sola with the same manufacturing process. Production data is:
Cola Sola
- quantity produced is 20000 -quantity produced is 10000
-material cost per unit is $5 -material cost per unit is $20
-direct labour hour per unit is 0.5 Hour -direct labour hour per unit is 0.5 Hour
-direct labour costs per direct labour hour is $18 -direct labour costs per direct labour hour is $18
-machine hour per unit is 2 hours - machine hour per unit is 4 hours
Manufacturing overhead costs are $420 000.
Using the Traditional costing model with direct labour hours as the base for allocating overheads to production.
Which of the following is the full production cost per unit of Product Cola?
A. $18
B. $22
C. 28
D. 32
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