A company produces 5,000 units and has three cost pools: Assembly, Sanding, and Painting and estimates total manufacturing overhead to be $461,764. Direct Materials are $618,000 and Direct Labor is $325,000. Assembly uses 8,500 machine hours to measure its activities and estimates overhead of $415,905. Sanding uses 1,900 direct-labor hours to measure its activities and estimates overhead of $32,414. Painting uses 500 machine setups to measure its activities and estimates overhead of $13,445. Administrative costs are $255,000 and Selling costs are 113,000. What is the production cost per unit?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company produces 5,000 units and has three cost pools: Assembly, Sanding, and Painting and estimates total manufacturing overhead to be $461,764. Direct Materials are
$618,000 and Direct Labor is $325,000. Assembly uses 8,500 machine hours to measure its activities and estimates overhead of $415,905. Sanding uses 1,900 direct-labor
hours to measure its activities and estimates overhead of $32,414. Painting uses 500 machine setups to measure its activities and estimates overhead of $13,445.
Administrative costs are $255,000 and Selling costs are 113,000. What is the production cost per unit?
Multiple Choice
$92.35
$280.95
$354.55
$0
Transcribed Image Text:A company produces 5,000 units and has three cost pools: Assembly, Sanding, and Painting and estimates total manufacturing overhead to be $461,764. Direct Materials are $618,000 and Direct Labor is $325,000. Assembly uses 8,500 machine hours to measure its activities and estimates overhead of $415,905. Sanding uses 1,900 direct-labor hours to measure its activities and estimates overhead of $32,414. Painting uses 500 machine setups to measure its activities and estimates overhead of $13,445. Administrative costs are $255,000 and Selling costs are 113,000. What is the production cost per unit? Multiple Choice $92.35 $280.95 $354.55 $0
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