Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 30,000 units.
Per Unit Total
Direct materials $17
Direct labor $8
Variable manufacturing overhead $11
Fixed manufacturing overhead $300,000
Variable selling and administrative expenses $4
Fixed selling and administrative expenses $150,000
The company uses a 40% markup percentage on total cost.Compute the total cost per unit.

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facundobuzzetti facundobuzzetti · Answer 1 · 2020-06-24T03:16:24+02:00

Answer:

Total unitary cost= $55

Explanation:

Giving the following information:

Per Unit Total

Direct materials $17

Direct labor $8

Variable manufacturing overhead $11

Fixed manufacturing overhead $300,000

Variable selling and administrative expenses $4

Fixed selling and administrative expenses $150,000

First, we will calculate the total unitary fixed cost:

Total fixed costs= 300,000 + 150,000= 450,000

Unitary fixed cost= 450,000/30,000= $15

Now, the total unitary cost:

Total unitary cost= 17 + 8 + 11 + 4 + 15= $55