Question

Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June: Fin-X Sci-X Total Number of units 10,000 40,000 50,000 Parts cost per unit $ 25 $ 30 Other costs: Direct labor $ 62,000 Indirect materials 17,500 Overhead 70,500 Total $ 150,000 Required: Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June.

Answer 1