What is the cost per batch of pencils if absorption costing is used?
$35
$105
$109
$45
Ariana Corp. makes pencils. The actual and budgeted overhead for the year was $350,000. The company produced 5,000,000 pencils during the year and sold 4,760,000 pencils. The cost per batch of 1,000 pencils is as follows:
|
Direct materials |
$20 |
|
Direct labour |
$10 |
|
Variable overhead |
$5 |