Paige Corporation makes a mechanical stuffed alligator that sings the Martian na
ID: 2447301 • Letter: P
Question
Paige Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Paige Corporation’s anticipated annual volume of 500,000 units.
Per Unit Tota $6 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $17 $3,500,000 $13 $1,000,000 The company has a desired ROI of 40%. It has invested assets of $22,300,000 (a) Your answer is incorrect. Try again Compute the total cost per unit. Total cost per unit LINK TO TEXT Attempts: 1 of 5 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
Cost per unit
Variable cost=Direct materials+Direct labour+Variable manufacturing overhead+variable selling and administrative expenses
=( 6+8+17+13) * 500,000=220,00,000
Fixed cost =Fixed manufacturing overhead +Fixed selling and administrative expenses
= 3500000+1000000 =45,00,000
Total cost=Variable cost+Fixed cost=220,00,000+ 45,00,000=265,00,000
Cost per unit=26500000/500000=53 Rs per unit
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