Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 27,900 units.

Per Unit Total
Direct materials $16
Direct labor $10
Variable manufacturing overhead $16
Fixed manufacturing overhead $502,200
Variable selling and administrative expenses $6
Fixed selling and administrative expenses $111,600

The company uses a 40% markup percentage on total cost.

Required:
Compute the total cost per unit.

Sagot :

Zviko

Answer:

$62.40

Explanation:

Cost per unit = Total manufacturing cost + 40 % markup

therefore

Total manufacturing cost = $16 + $10 + $16 + ($502,200 ÷ 27,900)

                                            = $60

Cost per unit = $60 + ($60 x 40 %)

                      = $62.40

Conclusion

The total cost per unit is $62.40

We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.