Calculate the production cost per unit for each of landons

Reference no: EM13481731

Landon Company makes two models of children's playhouses, the Castle and the Mansion.

Basic production information follows:

	Castle			Mansion
Direct materials cost per unit	$	35		$	63
Direct labor cost per unit		21			36
Sales price per unit		357			572
Expected production per month		760	units		420	units

Landon has monthly overhead of $194,915, which is divided into the following cost pools:


Setup costs	$	83,300
Quality control		67,415
Maintenance		44,200

Total	$	194,915

The company has also compiled the following information about the chosen cost drivers:

	Castle	Mansion	Total
Number of setups	35	63	98
Number of inspections	320	375	695
Number of machine hours	1,100	1,500	2,600

		Overhead assigned
Castle Model:	$
Mansion Model:	$

Total Overhead Cost	$

Requirement 2:

Calculate the production cost per unit for each of Landon's products under a traditional costing system.

	Castle	Mansion
Unit cost	$	$

Reference no: EM13481731

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