CIMA P1 Question Answer
XY manufactures a range of products and uses an activity based costing system.
Budgeted production of Product B is 7,500 units.
Overheads have been identified by activity and related to appropriate cost drivers.
Product B is produced in batches of 250 units. Machines have to be reset after every batch and quality inspections are carried out on every third batch.
What is the total overhead cost per unit of Product B?
Give your answer to two decimal places.
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