How to find the cost per unti for the coming month?
Production is 25000 jars
Ingrediant Cost (variable cost) is $20,000, Labor cost (variable) is $12,000, depreciation (fixed) is $6,000, Other (fixed) is $1,000 total $39000
Cost per jar cost/25000
Ingrediant .80, labor .48, depriciation .24, other .04 total 1.56
Budget for the coming month (30,000)
Ingrediant 24,000, labor 14,400, depriciation 7,200, other 1,200, total 46,800
I am having trouble figuring out the cost per unit for the coming month?
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Ingrediant | Variable | 30000*0.8 | $ 24,000 | |||
Labor | Variable | 30000*0.48 | $ 14,400 | |||
Depreciation | Fixed | $ 6,000 | It will remain same at all level since this is fixed and do not change with change in sale of production | |||
Other | Fixed | $ 1,000 | ||||
Total | $ 45,400 | |||||
No of Units | 30,000 | |||||
Cost per Unit | 45400/30000 | $ 1.51 | ||||
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