What is the cost to produce one unit ? Each unit takes 4 pounds of material and each pound costs $5. Each unit takes 2 hours of direct labor time and workers are paid $20 per hour. Overhead is applied based on machine time. Each unit requires 3 hours of machine time and each hour of costs $4 of which $0.30 is depreciation. General and administrative costs are $900,000 and 100,000 units are produced and sold.