Question
Blossom Corp. produces and sells lamp shades. It is currently planning to launch a new children's line. The following are the projected costs based
Blossom Corp. produces and sells lamp shades. It is currently planning to launch a new children's line. The following are the projected costs based on projected units sold of 100,000. Variable costs per unit: Direct materials $11.10 Direct labour 12.00 Variable manufacturing overhead 8.00 Variable selling and administrative expenses 1.90 Annual fixed costs and expenses: Manufacturing overhead per unit $2.80 Selling and administrative expenses per unit 1.80 Blossom Corp. will invest $1,000,000 for this new launch and would like to earn a $9.86 per unit return on its investment. Calculate the total cost per unit using absorption costing. (Round answer to 2 decimal places, e.g. 15.25.) Total manufacturing cost per unit $
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