# STANDARD COST CARD question...

gabriellenlewis
Posts:

**129**AAT StudentI get the materials row correct but the other two I think i understand but it tells me i'm wrong?!

Please help, thanks.

gabriellenlewis
Posts: **129**AAT Student

I get the materials row correct but the other two I think i understand but it tells me i'm wrong?!

Please help, thanks.

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## Answers

14RegisteredMaterialTotal cost is £14.00 for 0.35 kg. Therefore cost per unit = 14.00 / 0.35 = £40.00

Quantity = 0.35 kg

Cost per unit = £40.00

Total cost = £14.00

Labour45 minutes = 3/4 of an hour = 0.75 hours. @ £12.00 per hour = £9.00

Quantity = 0.75 hours

Cost per unit = £12.00

Total cost = £9.00

Fixed overheadsFixed overheads are

absorbed on a labour hour basisso 1 unit will be absorbed per 0.75 hours.Total fixed overheads divided by number of units gives total cost = £63,000 / 12,000 = £5.25

Therefore cost per unit = £5.25 / 0.75 = £7.00

Quantity = 0.75 hours

Cost per unit = £7.00

Total cost = £5.25

Total = £14.00 + £9.00 + £5.25 = £28.25