Schopp Corporation makes a mechanical stuffed alligator that sings the Martian n

Question

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 484,000 units.

The company has a desired ROI of 25 %. It has invested assets of $ 28,281,000 .

Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)

Per Unit Total Direct materials $ 7.21 Direct labor $ 11.15 Variable manufacturing overhead $ 14.88 Fixed manufacturing overhead $ 3,015,320 Variable selling and administrative expenses $ 14.13 Fixed selling and administrative expenses $ 1,408,440

Explanation / Answer

Direct materials(484000*7.21)             3,489,640 Direct labor (484000*11.15)             5,396,600 Variable manufacturing overhead(484000*14.88)             7,201,920 Fixed manufacturing overhead             3,015,320 Variable selling and administrative expenses(484000*14.13)             6,838,920 Fixed selling and administrative expenses             1,408,440 Total Cost           27,350,840 Total Cost per unit(27350840 / 484000) 56.51

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