Laner Company has the following data for the production and sale of 2,300 units. Sales price per...

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Accounting

Laner Company has the following data for the production and saleof 2,300 units.
Sales price per unit $950 per unit
Fixed costs:
Marketing and administrative $529,000 per period
Manufacturing overhead $253,000 per period
Variable costs:
Marketing and administrative $65 per unit
Manufacturing overhead $95 per unit
Direct labor $115 per unit
Direct materials $230 per unit
What is the full cost per unit of making and selling theproduct?

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4.3 Ratings (591 Votes)

Total making and selling cost of the product:

material cost (2300 units @ 230) = 529000

Labour cost (2300 units @115) = 264500

Variable manufacturing overhead =218500

(2300@95)

Fixed manufacturing overhead = 253000

Total manufacturing cost =736529

Divide by number of units = 2300

cost per unit = 320.23

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Transcribed Image Text

Laner Company has the following data for the production and saleof 2,300 units.Sales price per unit $950 per unitFixed costs:Marketing and administrative $529,000 per periodManufacturing overhead $253,000 per periodVariable costs:Marketing and administrative $65 per unitManufacturing overhead $95 per unitDirect labor $115 per unitDirect materials $230 per unitWhat is the full cost per unit of making and selling theproduct?