QUESTION44.

Vasco manufactures tubes for industry. The cost is obtained by adding a direct

cost item – the cost of components – and a single indirect cost item, spread

over the products in proportion to the direct costs. In October, the total cost

of the components was €800,000  and the

amount of indirect costs was €500,000.

TUB1 and

TUB2 are two products in Vasco's catalogue. The cost of components for TUB1 is

€250  per unit and that of TUB2 is

€100  per unit.