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21 June, 16:07

Andee Company spends $4.69 in variable costs for each product produced. Fixed manufacturing overhead costs are $115,043 a year. This year, they produced 10,000 units. What is the average TOTAL cost per unit produced? Your answer should be input to two decimal places, without using a dollar sign or commas. (HINT: TOTAL cost is made up of fixed costs and variable costs)

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  1. 21 June, 16:32
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    Cost per unit = $16.194

    Explanation:

    Giving the following information:

    Andee Company spends $4.69 in variable costs for each product produced.

    Fixed manufacturing overhead costs are $115,043 a year.

    Q = 10,000 units.

    Total cost = Fixed cost + variabe cost*number of units

    Total cost = 115,043 + 4.69*10000 = $161,943

    Cost per unit = total cost/Q = 161943/10000 = $16.194
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