Answer:
$13.30 unit
Explanation:
Direct labor $8 per unit
Direct materials $3 per unit
Overhead
Total variable overhead $30,000
Total fixed overhead $85,000
Expected units to be produced 50,000 units
Total Direct labor = $8 x 50,000 units = $400,000
Total Direct materials = $3 x 50,000 units = $150,000
Total Cost = 400,000 + 150,000 + 85,000 + 30,000 = $665,000
Total cost per unit = $665,000 / 50,000 units = $13.30 unit
