Question

As production manager, Mr. B is asked to track the manufacturing cost per unit on the...

As production manager, Mr. B is asked to track the manufacturing cost per unit on the factory floor. Total manufacturing costs were $98000 before considering factory maintenance salaries of $10000 and $54000 of factory depreciation. How much is the calculation of manufacturing cost per unit if 400 units had been produced in the current quarter?

$270

$380

$245

$405

Homework Answers

Answer #2

Manufacturing cost include the total manufacturing cost like labour material etc. It also includes any cost incurred on factory like factory maintenance salary , Depreciation on Factory Equipment, Factory personnel etc.

Therefore in this case total manufacturing cost

= 98,000 + 10,000 + 54,000

= 162,000

Units produced = 400 units

Manufacturing cost per unit

= 162,000/400

= $405

Therefore the correct option is 4th.

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