Question
Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit
Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is:
Direct materials | $ | 5.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct labor | 5.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable manufacturing overhead | 2.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed manufacturing overhead | 12.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost per part | $ | 24.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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