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Question
Assume New Belgium Brewing Company manufactures and distributes three types of beer and that estimated per unit product costs and related information for the next year are shown in the following table:
| Blue Paddle | Somersault | Cocoa Mole Ale | |
| Cost data per unit: | |||
| Direct materials | $100,000 | $500,000 | $750,000 |
| Direct labor | $3,600 | $4,800 | $6,000 |
| Overhead | $12,000 | $16,000 | $20,000 |
| Total product cost per unit | $115,600 | $520,800 | $776,000 |
| Machine hours per unit | 30 MH | 40 MH | 50 MH |
| Number of units produced per year | 30 units | 20 units | 10 units |
a. If New Belgium Brewing Company uses a plantwide overhead rate based on machine hours, what is the total product cost per unit of Cocoa Mole Ale?
Answer:
Answer
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Related questions
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