RHO Company began operations on January 1 and produces a single product that sells for $ 10.25 per unit. The standard capacity is 80,000 units per year. Of the 80,000 units that were produced, 70,000 were sold during the year. Manufacturing costs and selling and administrative expenses were as follows: Fixed costs Variable costs Materials _____ $ 2.50 per unit Direct labor _____ $ 1.50 per unit Manufacturing overhead $ 120,000 $ 1.00 per unit produced Selling and administrative expenses $ 80,000 $ 0.50 per unit sold What is the standard cost of manufacturing a unit of product?
RHO Company began operations on January 1 and produces a single product that sells for $ 10.25 per unit. The standard capacity is 80,000 units per year. Of the 80,000 units that were produced, 70,000 were sold during the year. Manufacturing costs and selling and administrative expenses were as follows:
Fixed costs Variable costs
Materials _____ $ 2.50 per unit
Direct labor _____ $ 1.50 per unit
Manufacturing overhead $ 120,000 $ 1.00 per unit produced
Selling and administrative expenses $ 80,000 $ 0.50 per unit sold
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