Answer:
<em>Cost per Unit Fatboy= $ 27800 </em>
<em>Screamer Cost per unit = $3779.80 </em>
Explanation:
Howrley-David, Inc.
Fatboy Screamer Total
Units Assembled 990 1,980 2,970
Materials cost per unit $ 2,600 $ 3,600
Material Costs 2574000 7128000
Other costs:
Direct labor $1069200 2138400 $ 3,207,600
Indirect materials 534, 600
Other overhead <u> 1,603,800</u>
FoH 712800 1425600 2138400
Total Costs 2752,2000 7484000
<u>No of units 990 1980</u>
<u>Cost per Unit 27800 3779.80 </u>
The total costs have been added and then divided with the number of units to get the cost per unit.
Direct Labor Costs =Total Direct Labor Costs/ Total number of units* required number of units
DLC for Fatboy= $ 3,207,600 /2970 *990= $1069200
DLC for Screamer= $ 3,207,600 /2970 *1980= 2138400
FActory Overheads = Total Factory Costs/ Total Units ( Required Units)
FOH for Fatboy= 534, 600 +1,603,800/2970 * 990= 712800
FOH for Screamer = 534, 600 +1,603,800/2970 * 1980= 1425600
