Answer:
Total unitary cost= $121.5
Explanation:
Giving the following information:
Each ceiling fan has 20 separate parts.
The direct materials cost is $85
Each ceiling fan requires 3.5 hours of machine time to manufacture.
Activity Allocation Base Allocation Rate
Materials handling Number of parts $ 0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.70
To calculate the unitary manufacturing cost, we need to use the following formula:
Unitary manufacturing cost= direct material per unit + allocated overhead per unit
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Materials handling= 0.08*20= $1.6
Machining= 7.20*3.5= $25.2
Assembling= 0.35*20= $7
Packaging= 2.70*1= $2.7
Total= $36.5
Total unitary cost= 85 + 36.5= $121.5
