What is silver inc budgeted cost to produce one unit

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Reference no: EM132715610

Below are forecast sales and inventory information for Silver, Inc., :

Unit selling price $20 per unit

Sales 45,000 units

Beginning Finished Goods inventory 10,000 units

Desired ending Finished Goods inventory 9,000 units

  • The standard labor time to produce one unit is 0.5 hrs. and standard labor rate is $6 per hour. Silver allocate overhead using predetermined overhead rate at $2/labor hour.

Problem 1: What is Silver, Inc. budgeted cost to produce one unit?

A. $10/unit

B. $13/unit

C. $14/unit

D. $15/unit

Reference no: EM132715610

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