Keyes Company manufactured 1,000 widgets for $37.00 per unit. The material cost assigned to each unit is $13. Direct labor accounts for 25% of the total manufacturing cost. What is the
Per-unit cost of manufacturing overhead?

Question

Quizplus · Accepted Answer

The total manufacturing cost per unit is $37.00. The material cost is $13.00 per unit. Direct labor is 25% of the total manufacturing cost, which is 0.25 * $37.00 = $9.25. The manufacturing overhead is the remainder, which is $37.00 - $13.00 - $9.25 = $14.75 per unit.

Keyes Company Manufactured 1,000 Widgets for $37