Question

The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer:

 $95.2

Explanation:

The computation of the best estimate of the total variable manufacturing cost per unit is shown below;

Particulars                                                      Difference      Per unit  

Production Volume      6,800      8,000         1200    

Direct materials          $402,560  $473,600                           $59.2  

Direct labor                 $153,000   $180,000                           $22.5  

Manufacturing

overhead                     $1,007,900  $1,024,100  $16,200      $13.5

                                                                                     (16200 ÷ 1200)

Total Manufacturing

cost                              1563460     1677700                             $95.2