Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- # 120
Production volume 4000 units
Determine the value of prime cost
a
#416,000
b
#304,000
c
#240,000
d
#184,000
Explanation
Correct Option
bVideo Explanation
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Emmanuel isu
9 years ago
B is correct bcos , total production cost is equal to d addition of both prime cost & factory overhead:
TPC= PC+FO WHICH IS
TPC=360000 , PC=? , FO=56000 THEREFORE
PC= 360000-56000
PC=304000
