CAF-5 · Chapter 3 · Question 7 of 10
Continuing from the previous scenario, if Product G-101 is allocated Rs. 20,833 for paint stirring and the company produces exactly 500 units of G-101, what is the unit cost for this specific activity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 41.67
Explanation
The unit cost is calculated by dividing the total activity cost allocated to the product by the number of units produced. Rs. 20,833 / 500 units = Rs. 41.666 (rounded to Rs. 41.67).
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