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Compute the unit product costs for the two products

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Reference no: EM132982895

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours.

Data for the two products for the upcoming year follow:

                                                             Mercon               Wurcon
Direct materials cost per unit            $13.00              $11.00
Direct labor cost per unit                  $14.00              $15.00
Direct labor hours per unit                  0.90                 7.05
Number of units produced                    2,000               4,000

These products are customized to some degree for specific customers.

Required:

Problem 1. The company's manufacturing overhead costs for the year are expected to be $900,000. Using the company's conventional costing system, compute the unit product costs for the two products.

Reference no: EM132982895

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