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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
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