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    Compute Cost per Unit

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    I would like to understand material, Labor and activity costs of each product to help guide my pricing decisions.

    Compute the cost per unit of product 1, product 2, and product 3, Why do the costs differ across the three products?

    PRODUCT 1 PRODUCT 2 Product3
    Units per batch 150 200 60
    Direct Materials per unit $50 $75 $90
    Directo Labor per unit $20 $15 $21
    # of setups 2 5 3
    Machine hours per unit 0.10 0.15 0.20
    # of enginerring change
    orders associted with eh 0 1 2

    ACTIVITY COSTS
    Cost per setup $300
    Cost Per machine Hour $600
    Cost per enginerring change order 250

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    https://brainmass.com/business/business-math/compute-cost-per-unit-152567

    Solution Summary

    Excel file contains computation of Cost per Unit using activity based costing.

    $2.19

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