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Knappert Corporation makes one product and has provided the following information:
A. Each unit of finished goods requires 3 pounds of raw materials. The raw materials cost $5.00 per pound.
B. The direct labor wage rate is $24.00 per hour. Each unit of finished goods requires 2.8 direct labor-hours.
C. Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour.
D. The variable selling and administrative expense per unit sold is $3.80. The fixed selling and administrative expense per month is $50,000. The unit product cost is closest to:
Multiple Choice:
O $93.20
O $113.00
O $30.80
O $82.20

Respuesta :

pedrocarratore

Answer:

$113.0

Explanation:

A. Cost of material (M):

[tex]M=3*5.00\\M=\$15.00\ per\ unit[/tex]

B. Cost of Labor (L):

[tex]L=24*2.80\\L=\$67.20\ per\ unit[/tex]

C. Manufacturing overhead (O):

[tex]O=11*2.80\\O=\$30.80\ per\ unit[/tex]

D. Selling and administrative expense (S):

Those should not be included in the product cost.

Total cost per unit is:

[tex]U = M+L+O= 15.00+67.20+30.80\\U=\$113.00[/tex]

The unit product cost is closest to: $113.00.

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