Question

Bender's skateboards have the following manufacturing expenses: Direct Materials: $10/unit Direct Labor: $8/unit Rent: $10,000/month Depreciation:...

Bender's skateboards have the following manufacturing expenses:

Direct Materials: $10/unit

Direct Labor: $8/unit

Rent: $10,000/month

Depreciation: $5,000/month

Insurance: $1,000/month

If Bender's skateboards produces 2,000 skateboards in the month, what is the total cost per skateboard for the month?

Group of answer choices

$26

$18

$8

$16,000

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Answer #1

Total cost per skateboard for month:

Direct Material 2000*$10=$20000

Direct labor 2000*$8 =$16000

Rent =$10000

Depreciation =$5000

Insurance =$1000

Total Cost per Month =$52000

Cost per Skateboard $52000/20000

=$26

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