For Drake Corporation Average Cost per Unit of Direct materials $6.70 Direct labor $3.10 Variable manufacturing overhead $1.75. One more unit will cost $11.55 ($6.70+3.10+1.75).
The total amount of product costs incurred to make 4,800 units will be calculated as:
Direct materials = 4800 x 6.70 = 32,160
Add: Direct labor= 4800 x 3.10 = 14880
Add: Variable manufacturing overhead = 4800 x 1.75 = 8400
Therefore, the Total product cost will be:
= 32160+ 14880 + 8400
= $55,440
Total product cost for 4800 units will be = $55,440
Average costs per unit units will be = $55,440/4800
=$11.55
Learn more about Average Cost here:
brainly.com/question/14299580
#SPJ4
