Selected account balances for the year ended December 31 are provided below for BFun Company: Sales revenue ...............................................................$1,000,000 Selling and administrative salaries..................................$110,000 Purchases of raw materials .............................................$290,000 Direct labor ..................................................................................? Advertising expense ..........................................................$80,000 Manufacturing overhead ................................................$270,000 Sales Commissions ............................................................$50,000 Inventory balances at the beginning and end of the year were as follows: Beginning of End of the Year the Year Raw materials $40,000 $10,000 Work in process ? $35,000 Finished goods $50,000 ? The total manufacturing costs for the year were $683,000; the goods available for sale totaled $740,000; and the cost of goods sold totaled $660,000.

3. Assume that the dollar amounts given above are for the equivalent of 40,000 units produced and sold during the year. Calculate the following: a. Average material cost per unit b. Average labor cost per unit c. Average manufacturing overhead per unit d. Average total cost per unit

4. Assume that in the following year the company expects to produce and sell 50,000 units and manufacturing overhead is fixed. Remember, direct materials and direct labor are variable costs. Calculate the following: a. Average material cost per unit and total material cost b. Average labor cost per unit and total labor cost c. Average manufacturing overhead per unit and total manufacturing overhead cost d. Average total cost per unit