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  Company RST is reviewing its production costs for the month of February. The following information is available:

  • Total units produced: 95,000
  • Total direct materials cost: $225,000
  • Total direct labor cost: $190,000
  • Total manufacturing overhead cost: $155,000
  • Fixed selling and administrative expenses: $95,000

• Requirements:

  • Calculate the total manufacturing cost per unit.
  • Determine the total cost of goods manufactured.
  • Compute the total cost per unit including fixed selling and administrative expenses.
  • Analyze the cost structure and recommend cost-saving measures.