Ace widget company is a process manufacturer. the company budgeted 11,500 direct labor hours but had actual direct labor hours of 12,000. the company produced 60,000 equivalent units, spending $300,000 on material. labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. what is the total manufacturing cost per unit? round to the closest cent.

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1 March, 12:31

Ace widget company is a process manufacturer. the company budgeted 11,500 direct labor hours but had actual direct labor hours of 12,000. the company produced 60,000 equivalent units, spending $300,000 on material. labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. what is the total manufacturing cost per unit? round to the closest cent.

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Ellice · Answer 1

Hi there

total manufacturing cost=direct material cost+direct labor cost + manufacturing OH applied

Direct material=300000

Direct labor=15*12,000=180,000

Manufacturing OH applied=

25*11,500=287,500

total manufacturing cost

300,000+180,000+287,500=767,500

So

total manufacturing cost per unit is

767,500:60,000=12.8 round your answer to get 13 per unit

The answer is 13 per unit

Good luck!