Question 10.10: Woofer Ltd manufactures pencils in batches of 50,000. During...

Accounting and Finance for Business [EXP-50032]

Woofer Ltd manufactures pencils in batches of 50,000. During March, Batch no. 711
was poorly finished, resulting in only 44,000 pencils being completed. The remainder
were scrapped. Costs were as follows:

Raw materials £900
Direct labour £1,200
Overhead recovery £660

What was the cost per pencil in Batch no. 711?

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