The unit costs that follow were determined by dividing the total costs of each c
ID: 2424321 • Letter: T
Question
The unit costs that follow were determined by dividing the total costs of each component by the number of products produced. From these unit costs, determine the total cost per unit of primary processes and the total cost per unit of support services. Round your final answers to the nearest cent.
Research and development $ 1.00 Human resources 1.35 Design 0.60 Supply 1.00 Legal services 0.50 Production 4.20 Marketing 0.70 Distribution 0.80 Customer service 0.60 Information systems 0.80 Management accounting 0.20 Total cost per unit $ 11.75Explanation / Answer
Primary process cost per unit = 1 + 1.35 + 0.60 + 1 + 0.50 + 0.20 + 0.20
= 4.85 per unit
Support service cost per unit = 0.70 + 0.80 + 0.60 + 0.80
= 2.90 per unit
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