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JacknJill Ltd makes a single product and for a production level of 24,000 units has the following cost details:?

Materials6000 kilosat £20 per kilo

Labour8000 hoursat £12 an hour

Overheads£48,000

What is the per Kg Total cost ?

a)236

b)276

c)136

d)76

Accounting Cost Control Cost Engineering Cost Improvement Cost Optimisation
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/01
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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

for24K unitsmaterial cost =6000 *20 =120000 poundsLabour cost =8000 *12 = 96000 poundsoverhead        = 48000 pounds             ________________Total cost for24k units=244000 poundsPer Kilo(1000) units cost =244000/24 =10166.67 pounds

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