Grover Company has the following data for the production and sale of 1,700 units. Sales price per unit$950per unit Fixed costs: Marketing and administrative$340,000per period Manufacturing overhead$314,500per period Variable costs: Marketing and administrative$65per unit Manufacturing overhead$95per unit Direct labor$115per unit Direct materials$220per unit What is the variable manufacturing cost per unit

Question

Business

Marquez

27 February, 12:43

Grover Company has the following data for the production and sale of 1,700 units. Sales price per unit$950per unit Fixed costs: Marketing and administrative$340,000per period Manufacturing overhead$314,500per period Variable costs: Marketing and administrative$65per unit Manufacturing overhead$95per unit Direct labor$115per unit Direct materials$220per unit What is the variable manufacturing cost per unit

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Camilla Graham · Answer 1

The variable manufacturing cost per unit of Grover Company is $430

Explanation:

The variable manufacturing cost include Manufacturing overhead cost, Labor cost and Direct materials cost.

Marketing and administrative cost belongs to selling expense.

The variable manufacturing cost per unit = Manufacturing overhead cost per unit + Direct labor cost per unit + Direct materials cost per unit = $95 + $115 + $220 = $430