Question

Cupid Co. manufactures dog toys. One of its most popular products, Bacon Ben, has the following costs to produce 1,000 units: $9,600 direct materials, $1,920 advertising costs, $960 plant manager salary, and $640 salaries for factory maintenance. If the cost to produce one Bacon Ben is $14.72, how much is Cupid’s direct labor for this product?

Answer 1

Total direct labor cost= $4,800

Step-by-step explanation:

Giving the following information:

Bacon Ben, has the following costs to produce 1,000 units:

$9,600 direct materials

$1,920 in advertising costs

$960 plant manager salary

$640 salaries for factory maintenance.

The cost to produce one Bacon Ben is $14.72.

Total unitary cost= direct material + direct labor + manufacturing overhead

Unitary:

Direct material= (9600/1000)= 9.6

MOH= (960 + 640)/1000= 0.32

14.72= 9.6 + DL + 0.32

Direct labor= $4.8

Total direct labor cost= $4,800