# Compute Cost per Unit

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

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