Calculate the production cost per unit for each of landon


Landon Company makes two models of children's playhouses, the Castle and the Mansion.
Basic production information follows:

Castle Mansion
Direct materials cost per unit $ 35
$ 63
Direct labor cost per unit
21

36
Sales price per unit
357

572
Expected production per month
760 units
420 units

Landon has monthly overhead of $194,915, which is divided into the following cost pools:



Setup costs $ 83,300
Quality control
67,415
Maintenance
44,200



Total $ 194,915






The company has also compiled the following information about the chosen cost drivers:

Castle Mansion Total
Number of setups 35 63 98
Number of inspections 320 375 695
Number of machine hours 1,100 1,500 2,600





Overhead assigned
Castle Model: $
Mansion Model: $



Total Overhead Cost $






Requirement 2:

Calculate the production cost per unit for each of Landon's products under a traditional costing system.


Castle Mansion
Unit cost $ $

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Accounting Basics: Calculate the production cost per unit for each of landon
Reference No:- TGS0554876

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