Determine the cost per unit of production

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St Kilda Enterprises produces parts for electronics industry.The production manager and the cost analyst reviewed the accounts for previous accounts and hve provided an estimated breakdown fixed and variable portions of manufacturing.

                                Fixed                   variable                            Total

Indirect material         $5,200                 $10,200                    $ 15,400

Indirect labour           3,100                    17,100                      20,200

Supervision            11,200                        4,100                     15,300

Depreciation          38,200                        6,200                      44,400

Maintenance         18,200                       23,200                       41,400

Total             $ 75, 900                          $60,800                     $136,700

Direct material for the month amounted to $108,500. Direct labour for the month was $203,500. During the month ,12,500units were produced

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Question 1. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250units provided an estimate for total production cost for next month

Question 2. Determine the cost per unit of production for the previous month and the next month.

  • No changes expected in these cost relations next month. The firm has budgeted production of 16.250 units. Provide an estimate for total production cost for next month. (Do not round inteemediate calculations)

Reference no: EM132478541

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