The estimated unit costs for a company to produce and sell aproduct at a level...

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The estimated unit costs for a company to produce and sell aproduct at a level...

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:

Cost Item Estimated Unit Cost Direct material $ 32

Direct labor 20 Variable manufacturing overhead 15

Fixed manufacturing overhead 6

Variable selling expenses 3

Fixed selling expenses 4

What are the estimated conversion costs per unit?

business accounting

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Answer 1

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Answer #1

Conversion costs = Direct Labor + Manufacturing Overhead

Manufacturing Overhead = Variable Manufacturing Overhead + Fixed Manufacturing Overhead

Manufacturing Overhead = $15 + $6 = $21

Conversion costs = $20 + $21

Conversion costs = $41

So, estimated Conversion costs per unit = $41

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Answer 2

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