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 26,700 units.

The company uses a 41% markup percentage on total cost.

Compute the total cost per unit.

Total Cost Per Unit $________________________________________

Per Unit Total Direct materials $20 Direct labor $6 Variable manufacturing overhead $14 Fixed manufacturing overhead $453,900 Variable selling and administrative expenses $5 Fixed selling and administrative expenses $186,90

Explanation / Answer

Direct materials = 20

Direct labor = 6

Variable manufacturing overhead= 14

Fixed manufacturing overhead = 453900/26700 = 17

Variable selling and administrative expenses = 5

Fixed selling and administrative expenses = 18690 / 26700 = 0.7

total cost per unit= 62.7

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