Answer:
Explanation:
a.
Direct materials	101,500
Direct labour (13,600 * 13)	176, 800
Materials handling (508 * 0.28)	142.24
Cutting and lathe work (508 * 12.32)	6258.56
Assembly and inspection (13,600 * 17.5)	238,000
Total manufacturing cost	522,700.8
Cost per unit produced = 522,700.8 / 3,050 =  
= 171.377 per unit.
b. 
Predetermined overhead rate = Estimated overhead costs / Estimated Direct labour hours
(61,600 + 2,710,400 + 3,850,000) / 220,000
= 30.1 per direct labour hour
Direct materials	101,500
Direct labour (13,600 * 13)	176,800
Manufacturing overhead (13,600 * 30.1)	409,360
Total manufacturing cost	687,660
Cost per unit produced = 687,660/ 3,050
= 225.46 per unit.