   Chapter 2, Problem 11MCQ ### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

#### Solutions

Chapter
Section ### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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# JackMan Company produces die-cast metal bulldozers for toy shops. JackMan estimated the following average costs per bulldozer: Prime cost per unit is a. $8.65. b.$1.10. c. $0.95. d.$2.05. e. $9.75. To determine Calculate the amount of prime cost per unit. Explanation Prime Cost Per Unit: Prime cost per unit can be defined as the summation of per unit cost of direct labor and direct material. The amount of indirect cost is not included while evaluating the prime cost. e. Use the following formula to calculate the prime cost per unit: Prime cost per unit=Direct material per unit+Direct labor per unit Substitute$8.65 for direct material per unit and $1.10 for direct labor per unit in the above formula. Prime cost per unit=$8

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