Answer:
Total product cost for last week= $120,000
Unit cost per hockey= $240
Explanation:
Total product cost is the sum of direct material cost, direct labour and overhead
Direct material cost is the costs of all specific materials required to product a product. For example, wood, paint for making chairs.
Direct labour : the cost of the man hours used directly for the purpose of production. wages of carpenters working on the chairs. It is arrived as <em>active hours used for production × wage rate per hour.</em>
Overhead :Sum of the indirect costs. indirect costs. These include expenditures on materials , labour and expenses incurred not specifically for a particular product. Examples are, cost of detergent for cleaning the toilets, salaries of the accountant, rent of the factory, e.t.c.
Total product cost for last week
= $32,000 + $28,0000+ $60,000= $120,000
Cost per product = Total product cost/ units produced
Unit cost per hockey= $120,000/500= $240
