Question

The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.)

Answer 1

$95.2

Step-by-step explanation:

The computation of the best estimate of the total variable manufacturing cost per unit is shown below;

Particulars Difference Per unit

Production Volume 6,800 8,000 1200

Direct materials $402,560 $473,600 $59.2

Direct labor $153,000 $180,000 $22.5

Manufacturing

overhead $1,007,900 $1,024,100 $16,200 $13.5

(16200 ÷ 1200)

Total Manufacturing

cost 1563460 1677700 $95.2