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
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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