Jell Corporation uses the total cost concept of product pricing. Below is cost i

Question

Jell Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 62,722 units of its sole product. Jell desires a profit equal to a 24% rate of return on invested assets of $587,094.00.

Determine the cost per unit for the production and sale of the company's product.

Select the correct answer.

Fixed factory overhead cost $39,351.00 Fixed selling and administrative costs $7,465.00 Variable direct materials cost per unit $4.47 Variable direct labor cost per unit $1.88 Variable factory overhead cost per unit $1.13 Variable selling and administrative cost per unit $4.50

Explanation / Answer

cost per unit = 4.47 + 1.88 + 1.13 + 4.50 + (7465/62722) + (39351/62722) = 12.73

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