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nikitadnepr [17]
3 years ago
12

EB2.

Business
1 answer:
tino4ka555 [31]3 years ago
7 0

Answer:

$12

Explanation:

Overhead per machine hour = Overhead ÷ 160,000 machine hours

= $80,000 ÷ 160,000

= $0.5

Cost of each unit:

= Direct material + Direct labor + Overhead

=  $5 + $5 + (machine hours per unit × Overhead per machine hour)

= $5 + $5 + (4 × $0.5)

= $5 + $5 + $2

= $12

Therefore, the cost of each unit produced is $12.

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T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid,
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                                                Total           Per Unit

Materials                                        $155,200            $96

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Total costs                                $747,600          $623

Since South is going to increase its production by 300 more units to be able to sell them to North, that would change the average fixed cost per unit = $540,000 / 1,500 units = $360 per unit.

Therefore the total cost per unit = $96 + $48 + $29 + $360 = $533 (instead of $623).

Since South charges its sales to North a 20% margin, the selling price per unit should = $533 x 120% = $639.60 and the total invoice for the 300 units = $639.60 per unit x 300 units = $191,880

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Answer:

The answer is $610,000

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