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San Diego State University Operations And Supply Chain Management Assignment Help - Method

Question - Utease Corporation has many production plants across the midwestern United States. A newly
opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for
responsibility accounting purposes, as a profit center. The unit standard costs for a production unit,
with overhead applied based on direct labor hours, are as follows:

Manufacturing costs (per unit based on expected activity of 35,000 units or 45,500 direct labor hours):
Direct materials (2.0 pounds at $12) $ 24
Direct labor (1.3 hours at $80) 104
Variable overhead (1.3 hours at $10) 13
Fixed overhead (1.3 hours at $20) 26

Standard cost per unit $ 167

Budgeted selling and administrative costs:
Variable $ 3 per unit
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