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AAA manufactures key chains for college bookstores
AAA manufactures key chains for college bookstores. During 2019. The company had the following costs Diect materials used $31.000 Direct labor $18.000 Depreciation - factory equipment 52.000 Rent-Factory $ 12.000 Insurance - Factory 5 17.500 Depreciation - Office Equipment $ 750 Marketing expenses $ 2.500 Administrative expenses $ 40,000 35.000 units were produced in 2019. What is the product cost par unit Select one O $10
Expert Solution
Product Cost per unit = ($31000+18000+2000+12000+17500) / 35000 = $2.30 per unit
Answer is d. $2.30 per unit
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