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EMP cost in the manufacturing of $270,000 units are as follows: Variable Costs Direct Labor $2,100,000...

EMP cost in the manufacturing of $270,000 units are as follows:

Variable Costs

Direct Labor $2,100,000

Direct Materials $1,800,000

Variable Selling Expenses $600,000

Variable Overhead $900,000

Fixed Costs

Administrative Expenses $900,000

Fixed Overhead $860,000

EMP Target Profit is $400,000

Determine variable cost per unit

Business   Accounting   
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Answer #1

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Variable cost per unit = Total cost/units = 5400,000/270,000= $ 20 per unit.

Please note: The above is variable cost per unit. However if variable cost of goods manufactured per unit is asked it is (5400,000-600,000)/270,000 = 17.78/unit.

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