Determine the average cost of manufacturing one unit given the volume expected to be sold every year and assuming the MOH costs are allocated 2 based on the direct labor hours per unit. Please show all calculations and round to the nearest dollar. Calculate the sales price based on your cost calculation. I would recommend that you calculate the MOH per unit first. You should calculate an Overhead rate. Answer Average cost of manufacturing per unit $3,372 Sales price per unit $6,070 using goal seek, Markup = 80%, Markup = (Sales - (MOH + DM + DL))/(MOH + DM + DL) Overhead rate per Direct labor hour $13 Total overhead cost/ Direct labor hours MOH per unit $308 Overhead rate @ 24 hours Total Manufacturin Cost Overhead Cost | MOH per D/L hr | MOH per unit Manufacturing g Cost Prod/Perio Cost per unit Direct Materials $5,040,000 $5,040,000 52,800 Product Direct Labor $475,200 $475,200 $264 Product Salaries- office & administrative $500,000 Period ory per: $350,000 5350,000 $194 5350,000 5194 |Product Office Rent $150,000 Period Factory Rent $30,000 530,000 $17 $30,000 $17 Product Office utilities and Misc office expenses $15,000 Period Sales Travel $24,000 Period Insurance - office $12,000 Period Depreciation - office equipment $40,000 Period Depreciation for factory equipment 570,000 $70,000 $2 570,000 $39 |Product Advertising $20,000 Period Sales commissions $50,000 Period Factory Property taxes $25,000 $25,000 $1 $14 $25,000 $14 Product Maintenance for factory equipment 580,000 580,000 544 580,000 $44 |Product Total $6,881,200 $555,000 $13 $308 $6, 070, 200 $3,372 Conditions: Markup 80%% # of units 1,800 Direct Materials per job $2,800 Direct Labor Hours 43,200 hours Requires hour for cabinetry 24 hours Rate per hour $11