Exercise 8-4 (Part Level Submission) Kaspar Corporation makes a commercial-grade
ID: 2452538 • Letter: E
Question
Exercise 8-4 (Part Level Submission) Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 30,000 units. Per Unit Total Direct materials $ 21 Direct labor $ 7 Variable manufacturing overhead $ 12 Fixed manufacturing overhead $ 480,000 Variable selling and administrative expenses $ 2 Fixed selling and administrative expenses $ 90,000 The company uses a 42% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $ Exercise 8-4 (Part Level Submission) Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 30,000 units. Per Unit Total Direct materials $ 21 Direct labor $ 7 Variable manufacturing overhead $ 12 Fixed manufacturing overhead $ 480,000 Variable selling and administrative expenses $ 2 Fixed selling and administrative expenses $ 90,000 The company uses a 42% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $ Exercise 8-4 (Part Level Submission) Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 30,000 units. Per Unit Total Direct materials $ 21 Direct labor $ 7 Variable manufacturing overhead $ 12 Fixed manufacturing overhead $ 480,000 Variable selling and administrative expenses $ 2 Fixed selling and administrative expenses $ 90,000 The company uses a 42% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $
Explanation / Answer
Computation of the total cost per unit is as follows:
Particulars
Amount($)
Amount($)
Direct material
21
Direct labor
7
Variable manufactured overhead
12
Fixed manufactured overhead
480,000/30,000
16
Variable selling and admin expense
2
Fixed selling and admin expense
90,000/30,000
3
Profit margin
61*42%
25.62
Total cost per unit
86.62
Thus, the total cost per unit is$86.62.
Particulars
Amount($)
Amount($)
Direct material
21
Direct labor
7
Variable manufactured overhead
12
Fixed manufactured overhead
480,000/30,000
16
Variable selling and admin expense
2
Fixed selling and admin expense
90,000/30,000
3
Profit margin
61*42%
25.62
Total cost per unit
86.62
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