Question

Grover Company has the following data for the production and sale of 1,500 units. $ 850 per unit $ 270,000 per period $ 262,500 per period Sales price per unit Fixed costs: Marketing and administrative Manufacturing overhead Variable costs: Marketing and administrative Manufacturing overhead Direct labor Direct materials A A 55 per unit 85 per unit 105 per unit 200 per unit $ $ What is the full cost per unit of making and selling the product? Multiple Choice $620 $800 $565 $445

Answer 1

Caclulation of Full cost per unit
Direct material cost per unit	$                         200
Direct labor cost per unit	$                         105
Variable Manufacturing overhead cost per unit	$                           85
Fixed Manufacturing overhead cost per unit($262,500/1500 units)	$                         175
Variable Marketing and administrative cost per unit	$                           55
Fixed Marketing and administrative cost per unit($270,000/1500 units)	$                         180
Full cost per unit	$                         800
So Option B is answer