Calculate product cost per unit for August and September using the actual costing system.

Steps to Solve

1. Calculate Material Cost for Each Month

   Each unit of songkok requires 0.5 meters of velvet cloth. The cost per meter is RM5.

   For August:

   • Total production units = 1,000
   • Material cost = $1,000 \times 0.5 \times 5 = RM2,500$

   For September:

   • Total production units = 500
   • Material cost = $500 \times 0.5 \times 5 = RM1,250$

2. Calculate Labor Cost for Each Month

   Each unit requires 30 minutes of labor, which is 0.5 hours. The labor cost is RM10 per hour.

   For August:

   • Total labor cost = $1,000 \times 0.5 \times 10 = RM5,000$

   For September:

   • Total labor cost = $500 \times 0.5 \times 10 = RM2,500$

3. Calculate Total Costs for Each Month

   The total cost includes overheads, material costs, and labor costs.

   For August:

   • Total cost = Overhead + Material Cost + Labor Cost
   • Total cost = $12,000 + 2,500 + 5,000 = RM19,500$

   For September:

   • Total cost = Overhead + Material Cost + Labor Cost
   • Total cost = $10,000 + 1,250 + 2,500 = RM13,750$

4. Calculate Product Cost Per Unit for Each Month

   The product cost per unit is calculated by dividing the total cost by production units.

   For August:

   • Product cost per unit = $\frac{19,500}{1,000} = RM19.50$

   For September:

   • Product cost per unit = $\frac{13,750}{500} = RM27.50$