Ace widget company is a process manufacturer. the company budgeted 11,500 direct labor hours but had actual direct labor hours of 12,000. the company produced 60,000 equivalent units, spending $300,000 on material. labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. what is the total manufacturing cost per unit? round to the closest cent.

QUESTION POSTED AT 29/05/2020 - 02:12 PM

Answered by admin AT 29/05/2020 - 02:12 PM

Hi there

total manufacturing cost=direct material cost+direct labor cost+ manufacturing OH applied

Direct material=300000

Direct labor=15×12,000=180,000

Manufacturing OH applied=

total manufacturing cost

total manufacturing cost per unit is
767,500÷60,000=12.8 round your answer to get 13 per unit

The answer is 13 per unit

Good luck!
Post your answer

Related questions

What is the last step creating a budget

QUESTION POSTED AT 01/06/2020 - 02:38 PM