Problem 4 – The estimated unit costs for a company to produce and sell a product at a level of 12,000

Problem 4 – The estimated unit costs for a company to produce and sell a product at a level of 12,000

Question
	
The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:

Cost Item	Estimated
Unit Cost
Direct material	$32
Direct labor	20
Variable manufacturing overhead	15
Fixed manufacturing overhead	6
Variable selling expenses	3
Fixed selling expenses	4

a.	What are the estimated conversion costs per unit?
b.	What are the estimated prime costs per unit?
c.	What are the estimated variable costs per unit?