Question

Calculate total cost and cost per unit:

Direct material 24000
Direct wages 20000
Factory rent and rates. 2000
Depreciation on machinery 1000
Supervisor salary 3000
Indirect material 400
Indirect labour 600
Office expenses 3000
Other factory expenses 1000
Office salaries 3600
Printing and stationery 400
Administrative expenses 5000

Answer 1

total fixed cost + total variable cost ÷ total unit produce = cost per unit