Lindsay Fabrications Limited produces the YT32, which has the following costs:

Factory production overhead is recovered on the basis of machine hours. Each YT32 requires an input of 1.5 machine hours. The recovery rate per hour is £11.50.

The selling price of the YT32 is £62.50 per unit.
What is the contribution per unit of YT32?

A) £32.50
B) £25.50
C) £8.25
D) £14.00

Question

Lindsay Fabrications Limited produces the YT32, which has the following costs:

Factory production overhead is recovered on the basis of machine hours. Each YT32 requires an input of 1.5 machine hours. The recovery rate per hour is £11.50.

The selling price of the YT32 is £62.50 per unit.
What is the contribution per unit of YT32?

A) £32.50 
B) £25.50 
C) £8.25 
D) £14.00

Quizplus · Accepted Answer

The Answer of Lindsay Fabrications Limited produces the YT32, which has the following costs:

Factory production overhead is recovered on the basis of machine hours. Each YT32 requires an input of 1.5 machine hours. The recovery rate per hour is £11.50.

The selling price of the YT32 is £62.50 per unit.
What is the contribution per unit of YT32?

A) £32.50 
B) £25.50 
C) £8.25 
D) £14.00

Lindsay Fabrications Limited Produces the YT32, Which Has the Following