Table 1
Tech Engineering in TN Is Making a Product

Table 1
Tech Engineering in TN is making a product for the overseas market.
The following cost data for the product has been compiled.
$$\begin{array} { | l | l | } \hline \text { Item } & \text { Cost } \\\hline \text { Selling price } & \$ 167 \\\hline \text { Materials and purchased parts } & \$ 25 / \text { unit } \\\hline \text { Direct Labor } & 2 \mathrm { hrs } \text { at } \$ 20 \text { per hour } \\\hline \text { Fixed Cost } & \$ 1,400,000 \\\hline\end{array}$$
-If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

A) $72
B) $97
C) $65
D) None of these

Correct Answer:

Verified

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