Giuseppina's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate of $26 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $20, 000 per period. Period (nonmanufacturing) costs associated with flanges are $13, 000 per period, and are fixed How would your answer to requirement 2 differ if Giuseppina's Glassworks made and sold 10.000 flanges this period? The total cost per unit when manufacturing 10.000 flanges would be
Direct material | 3 |
Direct labor | 2.6 |
Manufacturing cost [20000/10000] | 2 |
Non manufacturing cost [13000/10000] | 1.30 |
Total cost per unit | 8.9 |
#
Direct labor cost per unit = Hours required per flages *cost per hour
= (1/10) *26
= $ 2.6
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