Question

what are the estimated prime costs per unit

The estimated unit costs for a company to produce and sell a produce and sell a product at a level of 12,000 units per month are as follows

Cost item
Estimated Unit Cost
Direct material
$32
Direct labor
20
Variable manufacturing overhead 15
Fixed manufacturing overhead
6
Variable selling expenses
3
Fixed selling expenses
4
What are the estimated prime costs per unit?


(a)$76

(b)$32

(c)$52

(d)$73

(e)$67


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Answer #1

Calculation of prime cost per unit 

Direct material
32
Direct labor
20
Prime cost per unit
52

The prime cost per unit is 52

option (c)52 is the correct choice

answered by: pr balajir rao
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