if direct material is 6.69, direct labor 3.33, variable overhead 1.27, and fixed overhead .088. if your producing 2400 units what is your total fixed cost and what is the variable cost per unit?
To calculate the total fixed cost, you need to multiply the fixed overhead by the number of units produced.
Fixed Overhead Cost per Unit = Fixed Overhead / Number of Units Produced
Fixed Overhead Cost per Unit = 0.088 / 2400
Fixed Overhead Cost per Unit = 0.00003667
Total Fixed Cost = Fixed Overhead Cost per Unit * Number of Units
Total Fixed Cost = 0.00003667 * 2400
Total Fixed Cost = 0.088
Therefore, the total fixed cost is 0.088.
To calculate the variable cost per unit, you need to add the costs of direct material, direct labor, and variable overhead.
Variable Cost per Unit = Direct Material + Direct Labor + Variable Overhead
Variable Cost per Unit = 6.69 + 3.33 + 1.27
Variable Cost per Unit = 11.29
Therefore, the variable cost per unit is 11.29.