Budget Electronics is planning to sell 2,200 and produce 2,000 wicker baskets during June.Each unit requires 120 linear feet of wicker and 0.70 hours of direct labor.Wicker costs $0.35 per linear foot and employees of the company are paid $13.00 per hour.Manufacturing overhead is applied at a rate of 140% of direct labor costs.The company wants to have 10% of the wicker needed for the next month's production available at the end of each month.The expected production in July is 1,800 baskets.What is the unit cost of each basket produced in June?

Question

Quizplus · Accepted Answer

The unit cost of each basket produced in June can be calculated as follows:1. Material Cost per Unit: 120 linear feet of wicker per basket * $0.35 per linear foot = $42.002. Labor Cost per Unit: 0.70 hours per basket * $13.00 per hour = $9.103. Overhead Cost per Unit: 140% of direct labor costs = 140% * $9.10 = $12.74Total Unit Cost = Material Cost per Unit + Labor Cost per Unit + Overhead Cost per UnitTotal Unit Cost = $42.00 + $9.10 + $12.74 = $63.84Therefore, none of the provided answer choices are correct.

Budget Electronics Is Planning to Sell 2,200 and Produce 2,000