alleryStart learning →Setup Rs 60,000 (200 setups), machine Rs 40,000 (2,000 hrs). Batch of 50 units: 10 setups, 100 hrs. Cost/unit?
ARs 150
BRs 120
CRs 80
DRs 100
Answer & Solution
Correct answer: D. Rs 100
Setups cost 300 x 10 = 3,000 and machine time 20 x 100 = 2,000, total 5,000 over 50 units is Rs 100.
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