Final answer:
The conversion cost per unit for Alpha Company is calculated by summing the direct labor and manufacturing overhead costs and then dividing by the number of units manufactured. The correct answer is $5.8 per unit (Option d).
Step-by-step explanation:
The student is asking how to calculate the conversion cost per unit for Alpha Company, based on the provided manufacturing data. The conversion cost includes both direct labor and manufacturing overhead. To calculate the conversion cost per unit, you sum the direct labor and manufacturing overhead costs and then divide by the number of units manufactured. The direct labor costs are $21,000 and the manufacturing overhead costs are $37,000. Thus, the total conversion costs are $21,000 + $37,000 = $58,000. This total is then divided by the 10,000 units manufactured, yielding a conversion cost per unit of $5.8.
To calculate the cost, the equation used is:
Conversion Cost per Unit = (Direct Labor + Manufacturing Overhead) / Total Units Manufactured
$5.8 = ($21,000 + $37,000) / 10,000 units