• 
  

  Company OPQ manufactures a single product. The following information pertains to its production for the month of June:

  • Total units produced: 8,000
  • Total direct materials cost: $30,000
  • Total direct labor cost: $24,000
  • Total manufacturing overhead cost: $15,000
  • Variable selling and administrative expenses: $8,000

• Requirements:

  • Compute the total manufacturing cost per unit.
  • Determine the total cost of goods manufactured.
  • Calculate the total cost per unit including variable selling and administrative expenses.
  • Evaluate the cost-effectiveness of production operations.