Neco 2019 Financial Accounting Question 31
Practice objective / multiple choice question 31 from the 2019 Neco Financial Accounting examination.
A manufacturing company produces two products, A and B. The total manufacturing overhead for the period is ₦120,000. Product A requires 3 machine‑hours per unit and product B requires 2 machine‑hours per unit. The company produced 500 units of A and 800 units of B. Direct material cost per unit is ₦200 for A and ₦150 for B; direct labour cost per unit is ₦120 for A and ₦100 for B. Overheads are allocated on the basis of machine‑hours. The company wants an overall profit of ₦80,000 and expects to sell all units. If the selling price of product B is set at 1.5 times its unit cost, what should be the selling price per unit of product A (rounded to two decimal places)?
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About This Question
This is Neco 2019 Financial Accounting Question 31. It is one of the objective questions from the 2019 Neco Financial Accounting examination.
Difficulty level: Hard .
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