Mathematics · Cost Accounting - Indexation
The following information relates to a company's semi-variable production overheads: - 20X2: Output = 1,000 units, Overhead = $12,000, Relevant price index = 130 - 20X3: Output = 1,200 units, Overhead = $14,000, Relevant price index = 140 What is the variable overhead cost per unit, expressed in 20X3 prices (to the nearest $0.01)?
- 1$11.67
- 2$10.00
- 3$5.38✓
- 4$5.00
Correct answer
$5.38
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