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hi, can someone tell me where the 4 from variable OH came from and where...

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Accounting

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hi, can someone tell me where the 4 from variable OH came from and where the $10 and 40% from fixed OH came from? I know the answer is $17 but im not sure where those numbers and percentages from variable OH and Fixed OH came from.

please help and thanks in advance!

CPA Adapted] Mikaelabelle Products sells product A at a selling price of $40 per unit. Mikaelabelle's cost per unit based on the full capacity of 500,000 units is as follows: 6 Direct materials Direct labor 3 Indirect manufacturing (60% of which is fixed) 10 $19 A one-time-only special order offering to buy 50,000 units was received from an overseas distributor. The only other costs that would be incurred on this order would be $4 per unit for shipping. Mikaelabelle has sufficient existing capacity to manufacture the additional units. In negotiating a price for the special order, Mikaelabelle should consider that the minimum selling price per unit should be $17 $19 $21 $23 . b C. d. 6 3 DM DL 3 Variable OH Fixed OH 4 4 (S10 x 40%) $17

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