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The following information is available for product H57. Direct material costs $48.00 per unit of product Costs of machining $37.50 per machine hour Costs of

  1. The following information is available for product H57.

    Direct material costs $48.00 per unit of product

    Costs of machining $37.50 per machine hour

    Costs of packing $12.50 per carton packed

    The firm applies 60% mark-up on costs.

    What is the total full cost of an order for 1000 units of product H57 which will use 65 machine hours and 45 cartons?

    a.

    $48 562.50

    b.

    None of the answers is correct

    c.

    $51 000.00

    d.

    $50 437.50

    e.

    $48 000.00

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