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Benson, Inc., manufactures a single product. The company's plantwide overhead rate is $25 per machine-hour (MH). Each unit of product requires 0.6 machine hours. The direct material cost per unit of product is estimated at $10.96 and direct labor cost is estimated at $3.84 per unit. The total unit cost of its product is estimated to be_____________?

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Answer:

Total unitary cost= $29.8

Explanation:

Giving the following information:

The company's plantwide overhead rate is $25 per machine-hour (MH). Each unit of the product requires 0.6 machine hours. The direct material cost per unit of product is estimated at $10.96 and direct labor cost is estimated at $3.84 per unit.

Total unitary cost= 10.96 + 3.84 + (25*0.6)= $29.8

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