How to calculate manufacturing cost (accounting)?
direct materials $6 per unit
direct labor $3.50 per unit
variable manufacturing overhead $1.50 per unit
fixed manufacturing overhead $4 per unit
fixed selling expense $3 per unit
fixed administrative expense $2 per unit
sales commissions $1 per unit
variable administrative expense $ .50 per unit
if 12,500 units are produced what is the total manufacturing cost incurred? and what is this amount on a per unit basis?
if you could just explain to me how to go about calculating this. the text is a bit unclear. thanks so much.