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 60,237 units of its sole product. Jell desires a profit equal to a 18% rate of return on invested assets of $602,302.00.

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

Select the correct answer.

Fixed factory overhead cost $36,331.00 Fixed selling and administrative costs $7,427.00 Variable direct materials cost per unit $4.86 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

$13.10   Statement showing computation Particulars Amount Fixed Factory Overhead                36,331.00 Fised selling and admin                  7,427.00 DM             292,751.82 DL             113,245.56 Variable Fac O/H                68,067.81 Variable Selling and admin             271,066.50 Total Cost             788,889.69 No of units                60,237.00 Cost per unit                        13.10

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