Holly Ltd. has the following costs for 1,000 units: $\begin{array}{lrr}&\text { Total Cost } & \text { Cost per Unit } \
\text { Direct materials } & £ 1,500 & £ 1.50 \
\text { Direct labour } & 7,500 & 7.50 \
\text { Depreciation on building } & 30,000 & 30.00
\end{array}$ What is the total amount of direct materials for 100 units?
A)£1.50
B)£3.00
C)£150.00
D)£225.00

Question

Quizplus · Accepted Answer

The total amount of direct materials for 100 units is calculated by taking the cost per unit of direct materials (£1.50) and multiplying it by the number of units (100), which equals £150.00.

Holly Ltd Has the Following Costs for 1,000 Units What Is the Total Amount of Direct Materials for 100