Tag: Variable Costs

The table shows information for the last three months’ production for Alex Ltd

• total of manufacturing hours: Budgeted 240,000 hours AND Actual 270,000 hours
• hours to make one unit: Budgeted 3.0 hours AND Actual 2.7 hours

The budgeted manufacturing costs for the three month period are £720,000.

What is the budgeted cost per unit?

Select ONE answer:

1. £1.5
2. £2.25
3. £3
4. £4

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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