Copley Enterprises manufactures digital video equipment.For each unit $1,475 of direct material is used and there is $1,500 of direct manufacturing labour at $30 per hour.Manufacturing overhead is applied at $35 per direct manufacturing labour hour.Calculate the cost of each unit.

Question

Quizplus · Accepted Answer

The cost of each unit includes direct materials, direct manufacturing labor, and manufacturing overhead. Direct materials cost $1,475. Direct manufacturing labor is $1,500, which is 50 hours at $30 per hour. Manufacturing overhead is $35 per hour for 50 hours, totaling $1,750. Therefore, the total cost per unit is $1,475 + $1,500 + $1,750 = $4,725.

Copley Enterprises Manufactures Digital Video Equipment