Jennifer reviewed last year's product cost information for the company's 1.7 cubic foot (dorm-sized) mini refrigerator....

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Jennifer reviewed last year's product cost information for the company's 1.7 cubic foot (dorm-sized) mini refrigerator. Although Jennifer noted the total cost at $32.23/unit, the breakdown for each type of cost was not there. This was disappointing, as she wanted to compare her current detail to last year's. To support this year's unit cost, she gathered the following production data and key activity data from the plant. Surely something similar had been done last year? Quantity Used by Activity Cost Total Quantity of Cost Driver Mini Fridge Materials handling $216,000 80,000 pounds of material moved 14,600 Assembly 395,000 50,000 direct labor hours 13,900 Quality control 165,000 25,000 number of inspections 2,400 Additional Detail for Mini Fridge Total direct materials costs $252,500 Total direct labor costs $337,500 Units produced 25,000 (a) Calculate the total cost per unit for the mini fridge this year using the above information. (Round answer to 2 decimal places, eg. 15.25.) Total cost per unit Jennifer reviewed last year's product cost information for the company's 1.7 cubic foot (dorm-sized) mini refrigerator. Although Jennifer noted the total cost at $32.23/unit, the breakdown for each type of cost was not there. This was disappointing, as she wanted to compare her current detail to last year's. To support this year's unit cost, she gathered the following production data and key activity data from the plant. Surely something similar had been done last year? Quantity Used by Activity Cost Total Quantity of Cost Driver Mini Fridge Materials handling $216,000 80,000 pounds of material moved 14,600 Assembly 395,000 50,000 direct labor hours 13,900 Quality control 165,000 25,000 number of inspections 2,400 Additional Detail for Mini Fridge Total direct materials costs $252,500 Total direct labor costs $337,500 Units produced 25,000 (a) Calculate the total cost per unit for the mini fridge this year using the above information. (Round answer to 2 decimal places, eg. 15.25.) Total cost per unit

Answer rating: 100% (QA)

Estimated cost Cost driver Activity rate 216000 395000 ... View the full answer