Chocorageous Corp. is a factory that manufactures two varieties of candy bars: Milk Chocolate and Dark Chocolate. They are in the process of evaluating all of their budgeting needs for the year and will be utilizing a traditional costing system. The Milk Chocolate bars use the following resources: Milk Chocolate, $48,900; Wrapping Paper, $10,110; Assembly Line Wages, $84,600; and Machine operators Wages, $46,200. The Dark Chocolate bars use the following resources: Dark Chocolate, $37,400; Paper Wrappers, $8,222; Assembly Line Wages, $72,400; and Machine operators Wages, $33,600. Chocorageous assigns Manufacturing Overhead (MOH) costs based on 86% of Direct Labor (DL) costs. What is the total cost per unit for the Milk Chocolate bars if Chocorageous will produce 134,680 Milk Chocolate bars this year? (Round your answer to two decimal places.)

Question

Quizplus · Accepted Answer

The Answer of Chocorageous Corp. is a factory that manufactures two varieties of candy bars: Milk Chocolate and Dark Chocolate. They are in the process of evaluating all of their budgeting needs for the year and will be utilizing a traditional costing system. The Milk Chocolate bars use the following resources: Milk Chocolate, $48,900; Wrapping Paper, $10,110; Assembly Line Wages, $84,600; and Machine operators Wages, $46,200. The Dark Chocolate bars use the following resources: Dark Chocolate, $37,400; Paper Wrappers, $8,222; Assembly Line Wages, $72,400; and Machine operators Wages, $33,600. Chocorageous assigns Manufacturing Overhead (MOH) costs based on 86% of Direct Labor (DL) costs. What is the total cost per unit for the Milk Chocolate bars if Chocorageous will produce 134,680 Milk Chocolate bars this year? (Round your answer to two decimal places.)