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The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost
The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:
Cost Item | Estimated Unit Cost | ||
Direct material | $ | 32 | |
Direct labor | 20 | ||
Variable manufacturing overhead | 15 | ||
Fixed manufacturing overhead | 6 | ||
Variable selling expenses | 3 | ||
Fixed selling expenses | 4 | ||
What are the estimated prime costs per unit?
$73
$32
$67
$52
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