CUPORAMA Corp Three Types of Cups Were Produced in April

CUPORAMA Corp. manufactures cups. The company’s manufacturing operations and costs applied to products for April were:
$\begin{array}{|c|c|c|c|}\hline & \text { Moulding } & \text { Heat-treat } & \text { Finishing } \\\hline \text { Direct labour } & \$ 25,000 & \$ 12,500 & \$ 7,500 \\\hline \text { actory overhead } & 30,000 & 17,500 & 12,600 \\\hline \text { otal } & \$ 55,000 & \$ 30,000 & \$ 20,10 \\\hline\end{array}$ Three types of cups were produced in April.The quantities and direct materials costs were:
$\begin{array}{lcc}\text { Type } & \text { Quantity } & \text { Direct Materials } \\\hline \text { Casts } & 5,000 & \$ 15,000 \\\text { Cups } & 7,000 & 22,470 \\\text { Mugs } & 8,000 & 32,500\end{array}$ Casts are produced in the Moulding Department.Cups pass through the Moulding and Finishing departments.Mugs pass through all three departments.An operations costing system is used.
-Refer to the figure.What is CUPORAMA's total cost per unit for cups in April?

A) $4.09
B) $7.30
C) $7.84
D) $11.05

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free