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what is the total production cost for one unit 592944

What is the total production cost for one unit?

  1. $106.50
  2. $297.00
  3. $347.00
  4. $267.00

Midlands Products estimates the costs of one unit of a product as

Direct materials

40 kg @ $2.50 per kg

Direct labour

7 hours machining @ $12 per hour

4 hours finishing @ $7 per hour

Variable production overhead is applied at a rate of $5 per direct labour hour

Fixed production overhead is $1,000,000, based on a production volume of 12,500 units

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