Question

Grover Company has the following data for the production and sale of 1,700 units. Sales price per unit $ 950 per unit Fixed costs: Marketing and administrative $ 340,000 per period Manufacturing overhead $ 314,500 per period Variable costs: Marketing and administrative $ 65 per unit Manufacturing overhead $ 90 per unit Direct labor $ 110 per unit Direct materials $ 220 per unit What is the full cost per unit of making and selling the product

Answer 1

Answer:

Total unitary cost= $870

Explanation:

First, we need to calculate the unitary fixed costs:

Unitary fixed marketing and administrative cost= 340,000 / 1,700

Unitary fixed marketing and administrative cost= $200

Unitary fixed overhead= 314,500/1,700= $185 per unit

Now, we can determine the total unitary cost:

Marketing and administrative= 65

Manufacturing overhead= 90

Direct labor= 110

Direct materials= 220

Unitary fixed marketing and administrative cost= 200

Unitary fixed overhead= 185

Total unitary cost= $870