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Unformatted text preview: Average cost per unit for rent on the factory building:$90,000÷30,000 units=$3.00 per unit 3 Direct Materials: Rent, factory building: Per unit: $9.00(unchanged) Per unit: $90,000÷50,000 units=$1.80 pe Total: 50,000 units×$9.00 per unit=$450,000 Total:$90,000(unchanged) 4 plus Purchases of raw materials less Raw materials inventory, ending plus Work in process, beginning less Work in process, ending plus Cost of goods manufactured Rent’s average cost per unit decreased from $3.00 to $1.80 due to the rise of production between the two years. Fixed costs don’t change in total as the activity level changes, so the average cost of the unit will lower as the activity level increases. er unit...
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- Summer '10
- Accounting, Supply chain management terms, total manufacturing, production Direct labor Manufacturing