Weygandt, Financial &Hanagerial; Accounting, 2e Help I System Announcements (1 U

Question

Weygandt, Financial &Hanagerial; Accounting, 2e Help I System Announcements (1 Unread) Exercise 22-4 (Part Level Submission) Kaspar Corporation makes a commercial-grade cooking griddle. The folilowing volume of 29,500 units. information is available for Kaspar Corporation's antcipeted annual Unit Total $17 $9 $17 Direct materisls Direct labor Fixed manufacturing overhead Variable selling and administrative expenses $4 Fixed selling and administrative expenses The company uses a 41% markup percentage on total cost. $88,500 (a) Compute the total cost per unit Total cost per unit s Attempts:0 ef 3 used sE FOR SATER The parts of this uethio must be n MacBook 44 F6

Explanation / Answer

Total Variable cost = Direct material cost + Direct Labour Cost + Variable Manufacturing Overhead + Variable Selling and administrative Expenses

=(29,500 * 17) + (29,500 * 9) + (29,500 * 17) + (29,500 * 4)

=501,500 + 265,500 + 501,500 + 118,000 = 1,386,500

Total Fixed Cost = Fixed manufacturing Overhead + Fixed Selling and Administrative Expenses

= 383,500 + 68,500 = 452,000

Total Cost = Total Variable Cost + Total Fixed Cost

= 1,386,500 + 452,000 = 1,838,500

Total Cost per unit = Total Cost / Annual Volume

  = 1,838,500 / 29,500 = $62.32 per unit

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