Question

5.Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unit Fixed costs: Marketing and administrative $ 400,000 per period Manufacturing overhead $ 200,000 per period Variable costs: Marketing and administrative $ 50 per unit Manufacturing overhead $ 80 per unit Direct labor $ 100 per unit Direct Materials $ 200 per unit What is the prime cost per unit?(1.5 Points)

$100

$280

$300

$480

Answer 1

Answer: $300

Explanation:

Prime cost = Direct material + Direct Labor

Prime cost = $200 + 100 = $300 (Answer)