Question

How to find the cost per unti for the coming month? Production is 25000 jars Ingrediant...

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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