Hanley Trowbridge Limited Allocates Direct Labour and Materials Costs to Specific

Multiple Choice

Hanley Trowbridge Limited allocates direct labour and materials costs to specific jobs.Job No.1387 has been undertaken to produce 950 units of product.The following materials and labour have been booked to the job: Material ZYX: 330 kg at £25.35 per kilo
Direct labour Grade 6: 150 hours
Direct labour Grade 7: 40.5 hours
In addition, a royalty of £2.50p per unit is payable to the product designer.
Grade 6 labour costs £7.15 per hour.Grade 7 labour costs £8.30 per hour.
What is the prime cost per unit of product (to nearest penny) ?

A) £32.12
B) £12.79
C) £10.29
D) £12.43