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6 7 78 provide the updated full cost per unit for each of the current product lines. 19 50 Master Tool Corporation Limited 51 Standard Cost Summary 52 For the year ending July 31, 20x2 Economy pliers 15-cm pliers 20-cm pliers $ 54 55 56 57 58 59 60 61 62 63 64 65 66 Standard unit costs: Direct materials Direct labour Overhead (Note 1) Total manufacturing costs Variable selling & admin costs (Note 2) Fixed selling & admin costs (Note 3) Total cost Labour hours per unit Machine hours per unit 1.10 $ 0.50 5.00 6.60 0.35 0.26 7.21 $ 0.04 0.25 2.75 $ 0.65 6.50 9.90 0.55 0.40 10.85 $ 0.05 0.25 3.35 0.75 7.50 11.60 1.10 0.46 13.16 0.06 1.00 $ Unit sales Selling price per unit 100,000 7.50 $ $ 300,000 12.00 $ 70,000 14.50 Notes: 1 Manufacturing overhead is allocated to products at a predetermined rate based on direct labour in dollars. $ 2,677,500.0 Budgeted overhead Budgeted direct labour $ $ 2,975,000 297,500 $ 10.00 per dollar of direct labour hour cost 68 69 70 711 72 73 74 75 76 77 78 79 BO 81 82 83 34 85 86 B7 BB 59 "90% of total overhead is composed of depreciation, regular maintenance, related salaries, and other fixed manufacturing costs. The remaining 10% of overhead costs a variable and include the costs of operating the machines. 2 Variable selling and administrative costs consist entirely of sales commissions. Commission amounts per unit were negotiated with the salespeople two years ago. 3 Fixed selling and administrative costs are allocated to products at a predetermined rate based on total manufacturing costs. Budgeted fixed selling & admin costs Budgeted total manufacturing costs $ $ 177,680 4,442,000 4% of manufacturing costs 10

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