Compute the per-unit cost for each product

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Question - Gerald Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow.

 

Basco Boards

Shimano Boards

Production costs

 

 

Direct materials

$24.70

$37.40

Direct labor

$30.70

$52.40

Allocated overhead

$15.35

$19.40

Total units produced and sold

4,700

8,700

Total sales revenue

$411,250

$1,104,900

Gerald allocates production overhead using activity-based costing. lt allocates delivery expense and sales commissions, which amount to $57,500 per quarter, to the two products equally.

Required:

a. Compute the per-unit cost for each product.

b. Compute the profit for each product.

Reference no: EM131724491

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