The estimated unit costs for CNR Inc., when it is operating at a production and sales level of 12,000 units, are as follows:
Cost Item Estimated Unit Cost
Direct materials ............................................ $32
Direct labor ................................................. 10
Variable factory overhead ................................ 15
Fixed factory overhead ................................... 6
Variable marketing ........................................ 3
Fixed marketing ............................................ 4
Required:
(1) Identify the estimated conversion cost per unit.
(2) Identify the estimated prime cost per unit.
(3) Determine the estimated total variable cost per unit.
(4) Compute the total cost that would be incurred during a month with a production level of 12,000 units and a sales level of 8,000 units.