Determine variable costs per unit


Question:

Some selected cost data for a batch of 2000 units of Product C are given below

Direct materials + Direct labour

$125,000

Factory Overheads

(all indirect, 40% variable)

 $37,500

Administration Expenses

(20% variable)

$60,000

Selling & Distribution

($20,000 Variable)

$60,000

Determine the following:

(a) prime cost per unit

(b) Total fixed costs

(c) Variable costs per unit

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Accounting Basics: Determine variable costs per unit
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