Answer:
The Direct material cost per unit is = 285.714 per unit
The Direct labor per unit is= 142.857 per unit
The Overhead cost per unit is = 71.4285 per unit
Explanation:
Solution
We recall that:
The total direct material= $2000000
The total direct labor= $1000000
The units in products = 7000 units
The total Overheads= $500000
Now,
The direct materials on machinery is = $ 800,000(40%)
The direct labor on machinery is= $ 600,000(60 %)
The machinery on overheard is = $ 250,000(50 %)
The direct materials on assembly is = $ 1200,000
The Direct labor on assembly is = $ 400,000
The Overhead on assembly is = $ 250,000
Thus,
The hybrid manufacturing cost statement is represented or shown below
Particular Machinery (40%)in $ Assembly (60%)in $ Total in $
Now,
Particular = Direct material,
Machinery (40%)in $ = 800000
Assembly 60% in $ = 1200000
Total in $ =2000000
Grand total = 1650000
Particular = labor
Machinery (40%)in $ = 600000
Assembly 60% in $ = 400000
Total in $ = 1000000
Grand total = 1850000
Particulars = Overhead
Machinery (40%)in $ =250000
Assembly 60% in $ = 250000
Total in $ = 500000
Grand total = 3500000
Thus,
The Direct material cost per unit = 2000000/7000 = 285.714 per unit
The Direct labor per unit = 1000000/700 = 142.857 per unit
The Overhead cost per unit = 500000/7 = 71.4285 per unit
