Management Accounting 28

28. A company has the following costs of production for making 1,000 widgets in June:

 

£ Total (1,000 units)

Materials

2,000

Labour

5,000

Factory Rent

1,000

 

The “cost per unit” is:

A. £8 per unit under Absorption Costing and £2 per unit under Marginal Costing

B. £8 under Absorption Costing and £7 under Marginal Costing

C. £8 per unit under Marginal Costing and £7 per unit under Absorption Costing

D. £2 per unit under Marginal Costing and £5 per unit under Absorption Costing