Cost and Management AccountingQuestion 5425 of 251
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9. The budgeted variable cost of production of one unit of product P is -

Options

A` 46.33
B` 36.38
C` 25.33
D` 36.33
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Correct Answer

✅ Option A — ` 46.33

All Options:

  • A` 46.33 ✓
  • B` 36.38
  • C` 25.33
  • D` 36.33

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Detailed Solution & Explanation

The budgeted variable cost of production per unit of Product P includes raw materials, direct labour, and variable overheads:
1. Raw material Q: 3 kg×₹2/kg=₹6.00\displaystyle 3 \text{ kg} \times \text{₹} 2/\text{kg} = \text{₹} 6.00
2. Raw material R: 4 kg×₹3/kg=₹12.00\displaystyle 4 \text{ kg} \times \text{₹} 3/\text{kg} = \text{₹} 12.00
3. Direct Labour: 10 minutes60 minutes×₹50/hour=₹8.33\displaystyle \frac{10 \text{ minutes}}{60 \text{ minutes}} \times \text{₹} 50/\text{hour} = \text{₹} 8.33
4. Variable Manufacturing Overheads: ₹10.00 per unit
Total Variable Cost of Production per unit=6.00+12.00+8.33+10.00=₹36.33 per unit\text{Total Variable Cost of Production per unit} = 6.00 + 12.00 + 8.33 + 10.00 = \text{₹} 36.33 \text{ per unit}
Hence, **Option A** is the correct answer.

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