Question

Fox Corp. has been asked to quote a sales price for additional units of its product. These additional products are above its typical monthly production run of 5,000 units. The relevant data to prepare the quote is as follows: Additional Requested Units: 33 Labor hours to produce 1 unit: 0.79 Labor Cost per hour: $89.98 Material Cost per unit: $203.05 Other Manufacturing Expenses: 18% of the direct labor expense SG&A Expenses remain unchanged at: $173,000 Required Net Margin: 9.3% Compute the COGS per Unit.

Answer 1

The COGS per Unit is $286.92

Step-by-step explanation:

The computation of the cost of goods sold per unit is shown below:

= Material Cost per unit + Labor cost per unit + Other Manufacturing Expenses

where,

Material Cost per unit is $203.05

Labor cost per unit = Labor hours to produce 1 unit × Labor Cost per hour

= 0.79 × $89.98

= $71.08

And, the other manufacturing expenses = 18% of Labor cost per unit

= 18% × $71.08

= $12.79

Now put these values to the above formula

So, the value would equal to

= $203.05 + $71.08 + $12.79

= $286.92