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$S_n = \dfrac{q^{n+1}-1}{q-1}$. The LHS sum involves $\sum_{k=1}^{101}\binom{101}{k}S_{k-1}$.
After substituting and applying binomial theorem: the sum simplifies using $\sum \binom{101}{k}\frac{q^k-1}{q-1}$.
The result evaluates to $\alpha T_{100}$ where $\alpha = 2^{100}$.
Units produced and sold: 48,000; Direct materials ($3/kg): $298,000; Direct labour ($4/hr): $240,000; Fixed selling costs: $150,000; Variable selling costs: $24,000. Fixed production overheads absorbed at $10 per labour hour. What is the total absorption cost per unit?
Option B ($23.71) is correct.
Labour hours = $240,000 ÷ $4 = 60,000 hours
Fixed production overhead = 60,000 × $10 = $600,000
Total production cost = $298,000 + $240,000 + $600,000 = $1,138,000
Absorption cost per unit = $1,138,000 ÷ 48,000 = $23.71
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