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Homework answers / question archive / Kaspar Corporation makes a commercial-grade cooking griddle

Kaspar Corporation makes a commercial-grade cooking griddle

Accounting

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 $ 21 Direct labor $ 7 Variable manufacturing overhead $ 12 Fixed manufacturing overhead $ 480,000 Variable selling and administrative expenses $ 2 Fixed selling and administrative expenses $ 90,000 The company uses a 42% markup percentage on total cost. Compute the total cost per unit.

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Calculation of Total Cost per Unit

 

Particulars Amount ($)
Direct Materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses		 $ 21
$ 7
$ 12
$ 16
$ 2
$ 3
Total Cost per Unit $ 61

Working Note:

FixedManufacturingOverhead=480,00030,000=16Fixedsellingandadministrativeexpenses=90,00030,000=3

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