what is the variable cost of producing one unit 592943
What is the variable cost of producing one unit?
- $100
- $202
- $267
- $265
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