Kaspar Corporation makes a commercial-grade cooking griddle. The following infor

Question

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,900 units. Per Unit Total Direct materials $16 Direct labor $8 Variable manufacturing overhead $14 Fixed manufacturing overhead $414,400 Variable selling and administrative expenses $7 Fixed selling and administrative expenses $51,800 The company uses a 44% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $

Explanation / Answer

Particulars Amount Direct materials 16 Direct Labor 8 Variable manufacturing overhead 14 Fixed Manufacturing overhead ( 414400/25900) 16 Variable Selling and administrative expenses 7 Fixed Selling and administrative expenses ( 51800/25900) 2 Total Cost 63 Add: Markup 44% on total cost 27.72 Total Cost including Markup 90.72

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