Question
The following manufacturing costs were incurred by the Crater Company in 2019: Direct Materials $112,500 Direct Labor $175,000 Manufacturing overhead $235,000 These costs were incurred
The following manufacturing costs were incurred by the Crater Company in 2019:
Direct Materials | $112,500 |
Direct Labor | $175,000 |
Manufacturing overhead | $235,000 |
These costs were incurred to produce 25,000 units of product. Variable manufacturing overhead was 80% of the direct materials cost.
In 2002, the direct material and variable overhead costs per unit will increase by 20%, but the direct labor costs per unit are not expected to change. Fixed manufacturing costs are expected to increase by 2.5%. The company is expecting to produce 24,000 units in 2002.
What is the product costs per unit for 2002?
A.$21.14
B.$25.07
C.$22.76
D.$22.91
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