The following standard cost card is provided for Navid Company's Product A: $\begin{array}{l}
\text { Direct material (2 lbs. ( } \$ 5.00 \text { per lb.) }&\$10.00\
\text { Direct labor (1 hr @ \$5.00 per hr.) } &5.00\
\text { Variable overhead (1 hr. @ \$4.00 per hr.) } &4.00\
\text { Fixed overhead (1 hr. @ } \$ 2.00 \text { per hr.) } &\underline{2.00}\
\text { Total standard cost per unit }&\underline{\$21.00}
\end{array}$
The fixed overhead rate is based on total budgeted fixed overhead of $15,000. During the period, the company produced and sold 5,300 units at the following costs:
Direct material 15,000 pounds @ $4.50 per pound
Direct labor 5,050 hours @ $5.00 per hour
Overhead $29,970The standard manufacturing cost per unit is $27.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A) $23.15.
B) $20.65.
C) $21.20.
D) Cannot be determined from the information provided.

Question

The following standard cost card is provided for Navid Company's Product A: $\begin{array}{l}
\text { Direct material (2 lbs. ( } \$ 5.00 \text { per lb.) }&\$10.00\
\text { Direct labor (1 hr @ \$5.00 per hr.) } &5.00\
\text { Variable overhead (1 hr. @ \$4.00 per hr.) } &4.00\
\text { Fixed overhead (1 hr. @ } \$ 2.00 \text { per hr.) } &\underline{2.00}\
\text { Total standard cost per unit }&\underline{\$21.00}
\end{array}$
 The fixed overhead rate is based on total budgeted fixed overhead of $15,000. During the period, the company produced and sold 5,300 units at the following costs:
Direct material 15,000 pounds @ $4.50 per pound
Direct labor 5,050 hours @ $5.00 per hour
Overhead $29,970The standard manufacturing cost per unit is $27.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A) $23.15.
B) $20.65.
C) $21.20.
D) Cannot be determined from the information provided.

Quizplus · Accepted Answer

The actual manufacturing cost per unit is calculated as follows:Actual direct material cost per unit = (Actual direct material cost / Actual direct material quantity) = ($15,000 / 15,000 pounds) = $4.50 per poundActual direct labor cost per unit = (Actual direct labor cost / Actual direct labor hours) = ($5,050 / 5,050 hours) = $5.00 per hourActual overhead cost per unit = (Actual overhead cost / Actual production units) = ($29,970 / 5,300 units) = $5.65 per unitActual manufacturing cost per unit = Actual direct material cost per unit + Actual direct labor cost per unit + Actual overhead cost per unit = $4.50 + $5.00 + $5.65 = $23.15 per unit

The Following Standard Cost Card Is Provided for Navid Company's