STANDARD COST CARD question...

Material
Total 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

Labour
45 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 overheads
Fixed overheads are absorbed on a labour hour basis so 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