Andee Company spends $4.69 in variable costs for each product produced. Fixed manufacturing overhead costs are $115,043 a year. This year, they produced 10,000 units. What is the average TOTAL cost per unit produced? Your answer should be input to two decimal places, without using a dollar sign or commas. (HINT: TOTAL cost is made up of fixed costs and variable costs)

Question

Business

Deacon

21 January, 11:29

Andee Company spends $4.69 in variable costs for each product produced. Fixed manufacturing overhead costs are $115,043 a year. This year, they produced 10,000 units. What is the average TOTAL cost per unit produced? Your answer should be input to two decimal places, without using a dollar sign or commas. (HINT: TOTAL cost is made up of fixed costs and variable costs)

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Answers (1)

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Ahmad Harrington · Answer 1

Cost per unit = $16.194

Explanation:

Giving the following information:

Andee Company spends $4.69 in variable costs for each product produced.

Fixed manufacturing overhead costs are $115,043 a year.

Q = 10,000 units.

Total cost = Fixed cost + variabe cost*number of units

Total cost = 115,043 + 4.69*10000 = $161,943

Cost per unit = total cost/Q = 161943/10000 = $16.194