The following standard cost card is provided for Navid Company's Product A: $\begin{array}{l}
\text { Direct material (2 lbs. ( } \$ 5.00 \text { per lb.) }&\$10.00\
\text { Direct labor (1 hr @ \$8.00 per hr.) } &8.00\
\text { Variable overhead (1 hr. @ \$3.00 per hr.) } &3.00\
\text { Fixed overhead (1 hr. @ } \$ 2.00 \text { per hr.) } &\underline{2.00}\
\text { Total standard cost per unit }&\underline{\$23.00}
\end{array}$
The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,800 units at the following costs:Direct material 12,200 pounds @ $4.80 per poundDirect labor 5,950 hours @ $8.00 per hourOverhead $29,920
The standard manufacturing cost per unit is $23.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
A) $23.46.
B) $36.16.
C) $17.96.
D) Cannot be determined from the information provided.

Question

The following standard cost card is provided for Navid Company's Product A: $\begin{array}{l}
\text { Direct material (2 lbs. ( } \$ 5.00 \text { per lb.) }&\$10.00\
\text { Direct labor (1 hr @ \$8.00 per hr.) } &8.00\
\text { Variable overhead (1 hr. @ \$3.00 per hr.) } &3.00\
\text { Fixed overhead (1 hr. @ } \$ 2.00 \text { per hr.) } &\underline{2.00}\
\text { Total standard cost per unit }&\underline{\$23.00}
\end{array}$
  The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,800 units at the following costs:Direct material 12,200 pounds @ $4.80 per poundDirect labor 5,950 hours @ $8.00 per hourOverhead $29,920
The standard manufacturing cost per unit is $23.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
A) $23.46.
B) $36.16.
C) $17.96.
D) Cannot be determined from the information provided.

Quizplus · Accepted Answer

The actual manufacturing cost per unit is calculated by dividing the total actual costs by the number of units produced. Total actual costs: Direct material = 12,200 lbs * $4.80 = $58,560; Direct labor = 5,950 hrs * $8.00 = $47,600; Overhead = $29,920. Total actual costs = $58,560 + $47,600 + $29,920 = $136,080. Actual cost per unit = $136,080 / 5,800 units = $23.46.

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