Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 2 - Managerial Accounting and Cost Concepts - The Foundational 15 - Required - Page 53: 12

Answer

58750 or 4.70 per unit

Work Step by Step

Total amount of manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead = (12500*1.5) + 40000 = 58750 Total amount expressed on a per unit basis = 58750/ 12500 = 4.70
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