Calculation of Total Cost per Unit for Each Product Line

Question

Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $180 for Model 212.

Summary
The question belongs to management accounting and discusses about the total cost per unit for each product line if the direct labor and direct materials for a given product models.

Total Word Count 31