Question

In: Economics

Annual manufacturing cost data (1000s) for four product lines are as follows: Data Line 1 Line...

Annual manufacturing cost data (1000s) for four product lines are as follows:

Data

Line 1

Line 2

Line 3

Line 4

Annual production

4000

2500

9800

675

Cost of direct materials

$800

$650

$1200

$2500

Cost of direct labor

$3500

$3750

$600

$320

Rank the product lines from lowest to highest in terms of manufacturing cost per unit. Total indirect costs of $10,8 million are allocated based on total direct cost. (Please show work)

Solutions

Expert Solution

Ranking is 3-1-2-4

The excel calculation and formula used are shown below:

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