Answer:
Total Manufacturing cost per unit is $53
Explanation:
Manufacturing cost is the cost used to manufacture a product, both direct and indirect cost incurred in manufacturing process are included. It is the total value of material cost, labor cost and overhead cost.
Direct Material Cost = $18
Direct Labor cost = $5 per hour
Manufacturing overhead applied = $13 per unit
Total Activity rate = $30
Activity based costing is the method of allocation of overhead to the products / department / projects on the basis of uses of activity by each one.As we know that calculating an activity rate which is similar to predetermined overhead rate.
Total Manufacturing Cost = Direct material cost + Direct Labor cost + Manufacturing overhead cost
As we know that calculating an activity rate which is similar to predetermined overhead rate. so the activity rate will be used for overhead expense.
Total Manufacturing Cost = $18 + $5 + $30 = $53 per unit
