ACME company has the following production costs for May: Units produced ............ 2,000 Direct Material ............ $20,000

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ACME company has the following production costs for May: 

Units produced ............ 2,000

Direct Material ............ $20,000

Direct Labor 4,000 hrs @ ...... $15 per hour

Supplies .............. $5,000

Rent ................ $2,000

Depreciation ............. $3,000

Supervision .............. $8,000


In June they plan to produce 3,000 units. What is their production cost per unit for May and total production costs for June?

a. $49; $140,500

b. $49; $147,000

c. $43; $86,000

d. $43; $129,000

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Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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