Question

Knappert Corporation makes one product and has provided the following information:

Answer 1

Answer:

$113.0

Explanation:

A. Cost of material (M):

$M=3*5.00\\M=\ 15.00\ per\ unit$

B. Cost of Labor (L):

$L=24*2.80\\L=\ 67.20\ per\ unit$

C. Manufacturing overhead (O):

$O=11*2.80\\O=\ 30.80\ per\ unit$

D. Selling and administrative expense (S):

Those should not be included in the product cost.

Total cost per unit is:

$U = M+L+O= 15.00+67.20+30.80\\U=\ 113.00$

The unit product cost is closest to: $113.00.