Product Cost in Total and Per Unit Grin Company manufactures digital cameras. In January, Grin produced 2,000 cameras with the following costs: Direct materials $880,000 Direct labor 176,000 Manufacturing overhead 704,000 There were no beginning or ending inventories of WIP. Required: 1. What was the total product cost in January?$ 2. What was the product cost per unit in January? Round your answer to the nearest cent.$per unit
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Product Cost in Total and Per Unit
Grin Company manufactures digital cameras. In January, Grin produced 2,000 cameras with the following costs:
| Direct materials | $880,000 |
| Direct labor | 176,000 |
| Manufacturing overhead | 704,000 |
There were no beginning or ending inventories of WIP.
Required:
1. What was the total product cost in January?
$
2. What was the product cost per unit in January? Round your answer to the nearest cent.
$per unit
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