Determine the cost per unit of production for previous month

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Reference no: EM133033322

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

 

Fixed

Variable

Total

Indirect materials

$5,400

$10,400

$15,800

Indirect labor

3,200

17,200

20,400

Supervision

11,400

4,200

15,600

Depreciation

38,400

6,400

44,800

Maintenance

18,400

23,400

41,800

Total

$76,800

$61,600

$138,400

Direct materials for the month amounted to $109,500. Direct labor for the month was $204,500. During the month, 12,500 units were produced.

Required -

a. No changes are 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.

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

Reference no: EM133033322

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