Campus Coolers manufactures portable coolers with college logos. During 2018, the company had the following costs:...

Campus Coolers manufactures portable coolers with college logos. During 2018, the company had the following costs: Direct materials used $ 32,000 Factory rent 1,000 Shipping costs to retail store 600 Equipment depreciation - factory 2,000 Equipment depreciation - office 750 Advertising 2,500 Indirect labor 1,000 Administrative expenses 1,500 Direct labor 18,000 Sales commissions 3,000 3,000 units produced were in 2018. What is the product cost per unit? (Show calculations for partial credit.)

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Expert Solution

Direct materials used		32000
Direct labor		18000
Manufacturing overhead:
Factory rent	1000
Equipment depreciation - factory	2000
Indirect labor	1000
Total Manufacturing overhead		4000
Total product cost		54000
Divide by units produced		3000
Product cost per unit		18

$18 per unit is correct answer

ekkarill92 answered 2 years ago

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