Bhihar Fabrications Limited produces the ZB41, which has the following cost structure: Factory production overhead is recovered on the basis of machine hours.Each ZB41 requires an input of 1.5 machine hours.The recovery rate per hour is £11.50.
The selling price of the ZB41 is £52.50 per unit.
What is the contribution per unit of ZB41?

Question

Bhihar Fabrications Limited produces the ZB41, which has the following cost structure:  Factory production overhead is recovered on the basis of machine hours.Each ZB41 requires an input of 1.5 machine hours.The recovery rate per hour is £11.50.
The selling price of the ZB41 is £52.50 per unit.
What is the contribution per unit of ZB41?

Quizplus · Accepted Answer

The Answer is B

Bhihar Fabrications Limited Produces the ZB41, Which Has the Following