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Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 Materials and purchased parts $25/unit Direct Labor 2 hrs at $20 per hour Fixed Cost $1,400,000 If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

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ayokenny2001

The manufacturing cost per unit for Tech Engineering is $97 having charged overhead expenses at 80 % of labor cost

What is manufacturing cost?

Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material and direct labor.

Manufacturing cost is computed as:

= Materials and purchased parts cost + Direct labor cost + Overhead expenses

= $25 + $40 + 80% * $40

= $25 + $40 + $32

= $97

Hence, the manufacturing cost per unit for Tech Engineering is $97

Learn more about  manufacturing cost here : https://brainly.com/question/13767214

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