Calculate the unit cost, Calculate the unit cost for each

Calculate the unit cost

Reference no: EM131022703

Monte Company produces ski boots. At the beginning of the year, the cost manager estimated that overhead costs would be $11,640,000 and that the units producedwould be 1,200,000. Actual data concerning production for the past year follow:Quarter 1 Quarter 2 Quarter 3 Quarter 4 TotalUnits produced 400,000 160,000 80,000 560,000 1,200,000Prime costs $8,000,000 $3,200,000 $1,600,000 $11,200,000 $24,000,000Overhead costs $3,200,000 $2,400,000 $3,600,000 $2,800,000 $12,000,000

Required

1. Calculate the unit cost for each quarter and for the year using the following costs:

a. Actual prime costs

b. Actual overhead costs

c. Actual total manufacturing costs

2. What do the calculations in Requirement 1 tell you about actual costing?

3. Using supporting calculations, describe how normal costing would work.

Reference no: EM131022703

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