Answered

The estimated unit costs for a company to produce and sell a product at a level of 13,800 units per month are as follows: Cost Item Estimated Unit Cost Direct material $ 37 Direct labor 27 Variable manufacturing overhead 22 Fixed manufacturing overhead 9 Variable selling expenses 3 Fixed selling expenses 4 What are the estimated conversion costs per unit?

Answer :

Answer:

Conversion Cost= $58 per unit

Explanation:

Giving the following information:

Direct labor= 27

Variable manufacturing overhead= 22

Fixed manufacturing overhead= 9

The conversion costs are the sum of direct labor and factory overhead:

CC= direct labor + factory overhead

CC= 27 + (22 + 9)= $58 per unit