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Total Product Cost and Per-Unit Product Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $26,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $70,000. By the end of the week, the company had manufactured 7,000 hockey sticks. PLEASE EXPLAIN HOW.

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TomShelby

Answer:

Total production cost: $121,000

Unit cost: 17,2857 = $17.29

Explanation:

the unit cost will be the result of dividing the total unit putput by the cost added into the manufacturing process to generate that ouput.

material cost + labor cost + overhead cost = total cost

26,000 + 20,000 + 70,000 = 121,000

Then we divide over the total output

121,000 / 7,000 = 17,2857

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