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Kaspar Corporation makes a commercial-grade cooking griddle
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.
Expert Solution
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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