standar absorption cost per unit

nabutt

how to find st absorbtion cost /unit if

direct material = 8 kg @1.50/kg
labour = 3 hrs @2/hr

Fixed prduction overhead is absorbed @200% of direct wages


Thnkx in advance

SandyHood

Standard absorption cost of one unit

D Material

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8.00kg x £1.50/kg= £12.00
D Labour

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.--3.00 hrs x £2.00/hr = £6.00 mean hourly rate!
Fixed overhead -3.00 hrs x £4.00/hr = £12.00 see how the OAR is 200% x the direct labour rate
Total standard cost per unit

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£30.00