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Cost Formulas

Shorewood Manufacturing produces a single product requiring the following directmaterial and direct labor:

$\backslash$table$[[,$Cost per Unit of Input,Required Amount per Unit of Product$],[$Material A$,$$$\frac{40}{?}$ pound,$10$ ounces$],[$Material B$,$$$\frac{25}{?}$ pound,$8$ ounces$],[$Material C$,$$$\frac{100}{?}$ gallon,$0\mathrm{.}3$ gallon$],[$Cutting labor,$$\frac{45}{?}$ hour,$30$ minutes$],[$Shaping labor,$$\frac{55}{?}$ hour,$15$ minutes$],[$Finishing labor,$$\frac{60}{?}$ hour,$45$ minutes$]]$

Manufacturing overhead consists of indirect material, $$0\mathrm{.}60$ per unit of product; indirect labor, $$1,000$ per month plus $$0\mathrm{.}70$ per unit of product; factory maintenance, $$14,000$ per year plus $$0\mathrm{.}55$ per unit of product; factory depreciation, $$15,000$ per year; and annual factory property taxes, $$8,000.$ Selling and administrative expenses include the salaries of a sales manager, $$30,000$ per year; an office manager, $$18,000$ per year; and two salespersons, each of whom is paid a base salary of $$11,000$ per year and a commission of $$3$ per unit sold. Advertising and promotion of the product are done through a year$-$round media package program costing $$1,000$ per week.

a$.$ Analyze all cost and expense factors to determine a general formula $($based on units of production$)$ for total cost.

Round variable cost per unit answers to two decimal places, if applicable.aQ