Question

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation’s anticipated annual volume of 30,000 units. Direct materials $17 per unit Direct labor $ 8 per unit Variable manufacturing overhead $11 per unit Total Fixed manufacturing overhead $300,000 Variable selling and administrative expenses per unit cost $ 4 Fixed selling and administrative expenses $150,000 (Total cost) The company uses a 40% markup percentage on total cost. Required: (a) Compute the total cost per unit.

Answer 1

Based on the costs incurred by Kasper Corporation to make the commercial-grade cooking griddle, the total cost per unit is $55.00.

What is Kaspar Corporation's cost per unit?

This can be found as:
= Direct materials + Direct labor +  Variable manufacturing overhead  + Fixed manufacturing overhead per unit + Variable selling and administrative expenses + Fixed selling and administrative expenses per unit

Solving gives:

= 17 + 8 + 11 + (300,000 / 30,000) + 4 + (150,000 / 30,000)

= $55

Find out more on the total cost of produced units at brainly.com/question/18089483.

#SPJ1