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3 years ago

EA2.

Business

1 answer:

motikmotik3 years ago

7 0

Answer:

$40

Explanation:

Overhead per machine hour = Overhead ÷ 250,000 machine hours

= $750,000 ÷ 250,000

= $3

Cost of each unit:

= Direct material + Direct labor + Overhead

= $14 + $20 + (machine hours per unit × Overhead per machine hour)

= $14 + $20 + (2 × $3)

= $40

Therefore, the cost of each unit produced is $40.

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3 years ago

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Sales $10,800,000

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Ending Inventory $960,000

Cost of goods sold $8,640,000

Gross margin $2,160,000

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For the month ended May 31, 2016

Sales $10,800,000

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expenses

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expenses

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