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  Company PQR manufactures two products, S and T. The following information pertains to the production costs for the month of December:

  • Total units produced for Product S: 12,000
  • Total units produced for Product T: 8,000
  • Total direct materials cost: $60,000
  • Total direct labor cost: $48,000
  • Total manufacturing overhead cost: $35,000
  • Fixed selling and administrative expenses: $18,000

• Requirements:

  • Calculate the total manufacturing cost per unit for each product.
  • Determine the total cost of goods manufactured for both products combined.
  • Compute the total cost per unit including fixed selling and administrative expenses.
  • Analyze the cost efficiency of each product line.