Bubbly Soda spends $2 on direct materials, direct labor, and variable manufactur

Question

Bubbly Soda spends $2 on direct materials, direct labor, and variable manufacturing overhead for every unit (12 pack of soda)it produces. Fixed manufacturing overhead costs $7 ilion per year. The plant, which i uren y pera ng at y 75%of cap city, pr d ed 25 millon un shs yea the prioes it pays for materials, labor, and manufacturing overhead. Read the requirements. Manager ont plans to operato do toMaaa ty ne tyerprodu ng 35 ml uds.Mrage ont does na ticipate any changes n Requirement 2. What is the current average product cost per unit? Determine the formula, then calculate the current average product cost per unit (Enter your answer to the nearest cent.) Current average product cost per unit million milion per unit

Explanation / Answer

2)Current production cost /current number of unit = current average product cost

57/25 = $ 2.28 per unit

**current production cost =[2*25]+7 = 57

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