absorption costing - manufacturing cost per unit

Accounting
Tutor: None Selected Time limit: 1 Day

calculate Polk’s manufacturing cost per unit for 2012. Selling Price - $27. Sold 80,000 Produced 94,900

Variable Cost per Unit
Direct materials$8.10
Direct labor$2.65
Variable manufacturing overhead$6.21
Variable selling and administrative expenses$4.21
 
Fixed Costs per Year
Fixed manufacturing overhead$253,383
Fixed selling and administrative expenses

$259,308

Jun 24th, 2015

Thank you for the opportunity to help you with your question!

Total variable cost per unit = $8.10 + $2.65 + $6.21 + $ 4.21 = $21.17

Fixed manufacturing overhead per unit = $253383 / 94,900 = $2.67

Total manufacturing cost per unit = $21.17 + $2.67 = $23.84

Fixed selling and administrative expenses per unit = $259308 / 80000 = $3.214

Total cost per unit = $27.08

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 24th, 2015

Thanks so much!! I really appreciate it. However, I input the number, but it said incorrect... Do we add Variable selling and administrative expenses for VC?

Jun 24th, 2015

I should have not added variable selling and admin expense for VC, it was a mistake. Variable selling expense will get added for total cost though.

Jun 24th, 2015

OMG!! Thanks so much!! I got this one finally right!! Thanks!! I'll rate you right now for appreciation. Thanks!! :)

Jun 24th, 2015

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