Homework Answers
Answer is $71,280
If 4,800 units are produced:
Variable cost per unit = Direct materials + Direct labor +
Variable manufacturing overhead
Variable cost per unit = $7.00 + $3.10 + $1.75
Variable cost per unit = $11.85
Fixed manufacturing overhead per unit = $3.00
Fixed manufacturing overhead = Fixed manufacturing overhead per
unit * Units produced
Fixed manufacturing overhead = $3.00 * 4,800
Fixed manufacturing overhead = $14,400
Total product cost = Variable cost per unit * Units produced +
Fixed manufacturing overhead
Total product cost = $11.85 * 4,800 + $14,400
Total product cost = $71,280
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