Exercise 13-19 (Algo) Manufacturing overheadmultiple application bases LO 13-5, 13-6

Trendy Creations Tie Company manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 150% of material cost, and the balance of the overhead is applied at the rate of $7.30 per direct labor hour.

Required:

Calculate the cost per unit of a production run of 530 neckties that required raw materials costing $1,960 and 79 direct labor hours at a total cost of $870.

Note: Round your answer to 2 decimal places.

Cost per tie produced