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Friday Night, Inc manufactures high-quality S-liter boxes of wine which it sells for $14 per bar. Below is some information related to Friday Night's capacity
Friday Night, Inc manufactures high-quality S-liter boxes of wine which it sells for $14 per bar. Below is some information related to Friday Night's capacity and budgeted fixed manufacturing costs for 2021 box Budgeted Fixed Days of Hoursol Denominator Level Capacity Manufacturing Production Production Boxes per Concept Overhead per Period per Period per Day Hour Theoretical capacity $2.500.000 362 22 300 Practical capacity $2.500.000 310 16 250 Normal capacity $2,500,000 310 16 175 Master budget capacity $2.500,000 310 16 200 Production during 2021 was 990,000 boxes of wine with 15.000 remaining in ending Inventory at 12/31/21. Actual variable manufacturing costs were $1.762.200(there are no variable cost variances. Actualtod manufacturing overhead costs were $2.500,000, the same as budgeted. What is the total cost per unit (box of wine) when practical capacity is used? 34.66 $2.85 $4.30 SO OOO
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