Homework Answers
1)
Total product cost = (Direct material per unit + Direct labor per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit)
= ($5.95 + $3.30 + $1.60 + $3) X 4,000 units
= $55,400
1st option.
2)
Average lease cost per unit = Lease cost / Sales volume
= $697,200 / 26,400
= $26.41
4th option.
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