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During the current year, Betty is compiling figures for a cookie factory's cost accounting, which is currently utilizing traditional costing. The factory produces two kinds
During the current year, Betty is compiling figures for a cookie factory's cost accounting, which is currently utilizing traditional costing. The factory produces two kinds of cookies: chocolate chip and oatmeal raisin. Betty would like to calculate the total cost per unit and notes the following costs for chocolate chip: Direct Materials (DM), \$68852; and Direct Labor (DL), \$83200; and the following costs for oatmeal raisin: Direct Materials, \$58700; and Direct Labor, \$71700. The Manufacturing Overhead ( MOH) for each cookie will be 80% of their direct labor cost. The company created 127100 units of chocolate chip and 142000 units of oatmeal raisin during the period. What is the factory's total cost per unit for chocolate chip? A) $1.62 B) $2.00 C) $1.72 D) $1.52
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