Question

Andee Company spends $4.69 in variable costs for each product produced. Fixed manufacturing overhead costs are $115,043 a year. This year, they produced 10,000 units. What is the average TOTAL cost per unit produced? Your answer should be input to two decimal places, without using a dollar sign or commas. (HINT: TOTAL cost is made up of fixed costs and variable costs)

Answer 1

Answer:

Cost per unit=  $16.194

Explanation:

Giving the following information:

Andee Company spends $4.69 in variable costs for each product produced.

Fixed manufacturing overhead costs are $115,043 a year.

Q= 10,000 units.

Total cost= Fixed cost + variabe cost*number of units

Total cost= 115,043 + 4.69*10000= $161,943

Cost per unit= total cost/Q= 161943/10000= $16.194