Answer:
$67.80.
Explanation:
Long Short
Direct materials per unit $ 14.70 $ 48.50
For 60,000 units 882,000
Direct labor per unit $ 17.30 $ 50.90
For 60,000 units 1038000
Direct labor-hours per unit 0.70 2.10
Estimated Overhead 1796,077 1690,343
Total Costs 3716077
Unit Cost = Total Costs/ No of units = $ 3716077/ 60,000= $ 61.93=$ 62
Working
Direct labor support Cost for Long= ( $ 2,034,020 / 63,000 )* 42,000 =
$ 1356,013
Setting up machines Cost for Long(434,400 / 2,940 )*1190= $175,829
Part administration Cost for Long =( 1,018,000 / 3,660)* 950= $ 264,235
Long Short
Direct materials per unit $ 14.70 $ 48.50
Direct labor per unit $ 17.30 $ 50.90
Direct labor-hours per unit 0.70 2.10
Annual production 60,000 10,000
Estimated total manufacturing overhead $3,486,420
Estimated total direct labor-hours 63,000
Activities Activity Estimated
Measures Overhead Cost
Direct labor support (DLHs) $ 2,034,020
Setting up machines (setups) 434,400
Part administration (part types) 1,018,000
Total $ 3,486,420
Expected Activity Long Short Total DLHs
42,000 21,000 63,000
Setups 1,190 1,750 2,940
Part types 950 2,710 3,660
The unit product cost of product Long under the company's traditional costing system is closest to:
