A company uses batch costing and incurs a setup cost of 20,000 for a batch of 300 units. If direct materials cost 20 per unit and direct labor costs…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
A company uses batch costing and incurs a setup cost of 20,000 for a batch of 300 units. If direct materials cost 20 per unit and direct labor costs 10 per unit, what is the total cost of the batch?
(A) ₹ 25,000
(B) ₹ 29,000
(C) ₹ 32,000
(D) ₹ 7,000

Suggested Answer and Working Notes:

Correct Answer: Option (B)

₹ 29,000

Topics: Unit & Batch Costing

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