Using the following information calculate the product cost per unit.
Direct labour per unit $40
Direct materials per unit $55
Factory overhead applied at 25% of direct labour cost

Question

Quizplus · Accepted Answer

The product cost per unit is calculated by adding direct labour, direct materials, and factory overhead. Factory overhead is 25% of direct labour, which is $40 * 0.25 = $10. Therefore, the total cost is $40 (labour) + $55 (materials) + $10 (overhead) = $105.

Using the Following Information Calculate the Product Cost Per Unit