Answer:
Instructions are listed below
Explanation:
Giving the following information:
Year 1.
Direct materials and supplies $ 41,000
Employee costs 2,700,000
Production was 45,000 billable hours.
Fixed overhead was $700,000
Variable overhead $580,000
Total overhead 1,280,000
Unitary costs Year 1:
Direct materials= 0.91
Direct labor= 60
Variable overhead= 12.89
Unitary Costs Year 2:
Direct materials= 0.91*1.10= 1
Direct labor= 60*1.15= 69
Variable overhead= 12.89
Fixed overhead= 700000*1.05= 735,000
A) Total cost if billable hours= 36,000
Direct material= $36000
Direct labor= $2,484,000
Variable overhead= $464,040
Fixed overhead= $735,000
B)
Total cost per unit year 1= 0.91 + 60 + 12.89 + (700000/45000)= $89.36
Total cost per unit Year 2= 1 + 69 + 12.89 + (735000/36000)= $103.31
