Cost per unit
The unit costs are based on a production of 10000 units.
If 2000 units are produced what would be the:
Total prime cost = $8000
Conversion cost per unit = $ 12
Working
Direct material (2.5 x 2000) | $ 5,000.00 |
Direct labor (1.5 x 2000) | $ 3,000.00 |
Total prime cost | $ 8,000.00 |
.
Direct labor per unit | $ 1.50 |
Variable factory overhead | $ 3.00 |
Fixed factory overhead per unit [(1.5*10000)/2000] | $ 7.50 |
Conversion cost per unit | $ 12.00 |
Get Answers For Free
Most questions answered within 1 hours.