Answer
Step 1: Add together the absolute value of direct and indirect costs including materials, labor and overheads.
Step: 2: Divide by the total number of units produced to find out the manufacturing cost per unit for each product.
Work Step by Step
Tutorial Note: Out of USD 150 million total manufacturing costs, USD 15 million are fixed and rest are variable. Both fixed and variable manufacturing costs are apportioned on the basis of direct labor costs (Cost Driver/Base).
