In producing lawnmowers, General Company uses2.25 hours of direct labor per unit at $20 per hour ($45
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Question:
In producing lawnmowers, General Company uses2.25 hours of direct labor per unit at $20 per hour ($45 per unit). Each unit has $80 of material cost. The company incurs the following overhead costs:
- Material Handling $38,000
- Assembly Supervisor 45,000
- Purchasing 34,000
$117,000
They produce 5,000 units per year. What is the total cost per unit?
a.$ 103.80
b.$ 118.40
c.$ 133.90
d.$ 148.40
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