Question

In: Accounting

Emmitt’s direct material cost is $9 per unit. The direct labor rate is $16 per hour...

Emmitt’s direct material cost is $9 per unit. The direct labor rate is $16 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $1 per unit and total budgeted fixed overhead is $7,800. A sales commission of $6 is paid on each unit. If Emmitt expects to produce 2,800 units and sell 1,160 units, what is the budget cost of goods sold per unit? Round your answer to the nearest 2 decimal places

Solutions

Expert Solution

>Correct Answer = $ 16.79

>Working

A Direct Materail cost per unit $                        9.00
B = $ 16 x 1/4 Direct Labor Cost per unit $                        4.00
C Variable overhead cost per unit $                        1.00
D = $ 7800 / 2800 units Fixed overhead cost per unit $                        2.79
E = A+B+C+D Budgeted Cost of Goods Sold per unit $                      16.79

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