Best Made Electronics makes a variety of cellular telephone units. It uses cellular manufacturing. All of the costs incurred in the cell get charged to good units produced. It also pays its share of general overhead costs of $2,500,000 based on the driver chosen by the company. The general statistics for the cell are:

REQUIRED:

a. Assume general plant overhead is charged out using direct labor hours. How much total cost is there in the cell including this overhead?

b. How much does it cost per good unit to produce the cell phone?

Transcribed Image Text:

Best Made Electronics Cell Performance General Plant Total direct costs $10,000,000 2,500,000 Direct labor hours 10,000 50,000 Machine hours 2,000 20,000 Units made 500,000 NA