Question

Grover Company has the following data for the production and sale of 1,100 units.    Sales...

Grover Company has the following data for the production and sale of 1,100 units.
  

Sales price per unit $ 850 per unit
Fixed costs:
Marketing and administrative $ 520,000 per period
Manufacturing overhead $ 170,500 per period
Variable costs:
Marketing and administrative $ 60 per unit
Manufacturing overhead $ 90 per unit
Direct labor $ 110 per unit
Direct Materials $ 160 per unit

  
What is the prime cost per unit?

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Answer #1

prime cost per unit=Direct materials+Direct labor

=160+110

which is equal to

=$270 per unit

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