CIMA Management Accounting P1 Question # 5 Topic 1 Discussion

CIMA Management Accounting P1 Question # 5 Topic 1 Discussion

P1 Exam Topic 1 Question 5 Discussion:
Question #: 5
Topic #: 1

A completed unit of Product A requires 9 kg of material and 10% of material is wasted in the production process.

Material has a standard cost of $5 per kg.

Product A also requires 4 labour hours at a standard cost of $10 per labour hour and variable overheads at a standard cost of $2 per labour hour

What is the standard variable production cost per unit of Product A?


A.

$97.50


B.

$93


C.

$98


D.

$50


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