Question

Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 9: (Click the icon to see the account classification.)

Answer 1

Table is showing per unit cost for 2017 with 80000 units and 2018 with 85000 units -  

Particulars	Per unit cost	2017 (80000 units)	Per unit cost	2018 (85000 units)
Direct Materials	4	320000	4.32	367200
Direct Manufacturing Cost	3	240000	3,36	285600
Power	0.50	40000	0.47	40000
Supervision labour - ( 68000/ 80000= 0.85) Variable( 20%) ( 0.85 X 20%) Fixed ( 80%)	0.17 0.68	13600 54400	0.17 0.64	14450 54400
Materials Handling labour - (60000/80000=0.75) Variable (40%) Fixed (60%)	0.30 0.45	24000 36000	0.30 0.42	25500 36000
Maintenance Labour - ( 80000/80000=1) Variable (45%) Fixed (55%)	0.45 0.55	36000 44000	0.45 0.52	38250 44000
Depreciation (Fixed)	1.125	90000	1.11	94500
Rent, Property taxes and administration (Fixed)	1.56	125000	1,62	137500
Total	12.79	1023000	13.38	1137400

Total manufacturing cost per unit in 2017 is 12.79 for 80000 units.

   Total manufacturing cost per unit in 2018 is 13.38 for 85000 units.

This is very better estimates to fixed and variable cost. And this estimated is helpful to Benoit plastic manufacturing. and its showing that if prices are increasing then increased in production is showing increasing per unit cost.so this is helpful estimate.