Question

Giuseppina's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass...

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

Homework Answers

Answer #1
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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