Keep Cool Industries, Inc., manufactures fans for personal use. Department 70 is responsible for assembling the fan. Department 71 packages them for shipment. Keep Cool recently produced 10,000 fans for a national retailer. In fulfilling this order, the departments incurred the following costs:

1. Compute the unit cost for each department.
2. Compute the total unit cost for the national retailer order.
3. The selling price for this order was $10 per unit. Was the selling price adequate? List the assumptions and/or computations upon which you based your answer. What suggestions would you make to Keep Cool€™s management about the pricing of future orders?
4. Compute the prime costs and conversion costs per unit for eachdepartment.

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Department 70 71 Direct materials used 30,000 $4,000 2,000 5000 3,000 Direct labor Overhead 8,000