Java Ltd manufactures two products, A and B. The manufacturing processes for the two products are very similar. The following are excerpts from the product data for these two products for this year: Overhead costs total $285 000.
What is the cost per unit for each of A and B in respect of overhead costs using absorption costing, if costs are absorbed on the basis of direct labour hours?
A) $15 and $30
B) $1 and $2
C) $16.96 and $23.75
D) $38.86 and $12.95

Question

Java Ltd manufactures two products, A and B. The manufacturing processes for the two products are very similar. The following are excerpts from the product data for these two products for this year:  Overhead costs total $285 000.
What is the cost per unit for each of A and B in respect of overhead costs using absorption costing, if costs are absorbed on the basis of direct labour hours?
A) $15 and $30 
B) $1 and $2 
C) $16.96 and $23.75 
D) $38.86 and $12.95

Quizplus · Accepted Answer

The Answer of Java Ltd manufactures two products, A and B. The manufacturing processes for the two products are very similar. The following are excerpts from the product data for these two products for this year:  Overhead costs total $285 000.
What is the cost per unit for each of A and B in respect of overhead costs using absorption costing, if costs are absorbed on the basis of direct labour hours?
A) $15 and $30 
B) $1 and $2 
C) $16.96 and $23.75 
D) $38.86 and $12.95

Java Ltd Manufactures Two Products, a and B