Question

Grover Company has the following data for the production and sale of 1,900 units. Sales price per unit $ 950 per unit Fixed costs: Marketing and administrative $ 418,000 per period Manufacturing overhead $ 370,500 per period Variable costs: Marketing and administrative $ 50 per unit Manufacturing overhead $ 80 per unit Direct labor $ 100 per unit Direct materials $ 240 per unit What is the total manufacturing cost per unit

Answer 1

$415

Explanation:

The computation of the total manufacturing cost per unit is shown below:-

Total manufacturing cost per unit = Direct material + Direct labor + Manufacturing overhead + Fixed manufacturing overhead

= $240 + $100 + $80 + ($370,500 ÷ 1,900)

= $40 + $100 + $80 + $195

= $415

SO, we have applied the above formula.