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vodomira [7]
3 years ago
9

A manufacturer reports the following costs to produce 10,000 units in its first year of operations:

Business
1 answer:
rewona [7]3 years ago
7 0

Answer:

Option (C) is correct.

Explanation:

Variable overhead per unit:

= Variable overhead ÷ Total units produced

= $70,000 ÷ 10,000

= $7 per unit

Fixed overhead per unit:

= Fixed overhead ÷ Total units produced

= 120,000 ÷ 10,000

= $12 per unit

Total product cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= 10 + 6 + 7 + 12

= $35 per unit

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