Kaycom, Inc. reports the following information:

Units produced 510 units

Units sold 510 units

Sales price $160 per unit

Direct materials $30 per unit

Direct labor $35 per unit

Variable manufacturing overhead $20 per unit

Fixed manufacturing overhead $17,000 per year

Variable selling and administrative costs $10 per unit

Fixed selling and administrative costs $15,000 per year

What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)

A.$118.33

B.$68.33

C.$98.33

D.$95.00

Question

Rory Tyler

Business

20 June, 15:14

Kaycom, Inc. reports the following information:

Units produced 510 units

Units sold 510 units

Sales price $160 per unit

Direct materials $30 per unit

Direct labor $35 per unit

Variable manufacturing overhead $20 per unit

Fixed manufacturing overhead $17,000 per year

Variable selling and administrative costs $10 per unit

Fixed selling and administrative costs $15,000 per year

What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent.)

A.$118.33

B.$68.33

C.$98.33

D.$95.00

+1

Answers (1)

Know the Answer?

Gianna Kerr · Answer 1

A.$118.33

Explanation:

The computation of unit product cost is shown below:

= Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit

where,

Fixed manufacturing overhead per unit = $17,000 : 510 units = $33.33

All the other items would remain the same

Now put these values to the above formula

So, the per unit would equal to

= $30 + $35 + $20 + $33.33

= $118.33