Figure 4-10 The Emmanuele Company has collected the following data for use in calculating product costs:
Activity Data: (expected and actual)
Departmental Data: (expected and actual)

- Refer to Figure 4-10.What is the unit product cost for mops?
A) $11.00
B) $ 7.26
C) $ 4.00
D) $ 3.75

Question

Figure 4-10 The Emmanuele Company has collected the following data for use in calculating product costs:
Activity Data: (expected and actual)
 Departmental Data: (expected and actual)

- Refer to Figure 4-10.What is the unit product cost for mops?
A) $11.00 
B) $ 7.26 
C) $ 4.00 
D) $ 3.75

Quizplus · Accepted Answer

To calculate the unit product cost, we divide the total cost of producing the mops by the number of mops produced. The total cost includes direct materials, direct labor, and manufacturing overhead. The total cost of producing 60,000 mops is $435,600 ($190,000 + $100,000 + $145,600). The unit product cost is therefore $7.26 ($435,600 ÷ 60,000).

Figure 4-10 the Emmanuele Company Has Collected the Following Data