The following information is available for product XX5.
Direct material costs $48.00 per unit of product
Costs of machining $37.50 per machine hour
Costs of packing $12.50 per carton packed
What is the total full cost of an order for 1000 units of product XX5 which will use 65 machine hours and 45 cartons?
A)$48 000.00
B)$50 437.50
C)$51 000.00
D)$48 562.50

Question

Quizplus · Accepted Answer

The total full cost includes direct material costs, machining costs, and packing costs. For 1000 units, the direct material cost is 1000 * $48 = $48,000. The machining cost for 65 hours is 65 * $37.50 = $2,437.50. The packing cost for 45 cartons is 45 * $12.50 = $562.50. Adding these gives $48,000 + $2,437.50 + $562.50 = $51,000.

The Following Information Is Available for Product XX5