# A product cost is composed of the following direct

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Chapter 8 / Exercise 26
Anderson/Sweeney
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23) A product cost is composed of the following:Direct materials\$11Direct labor\$3Manufacturing overhead\$8The product sells for \$40 and a 15% commission is paid to a salesperson for every unit sold. Management accountants also estimate that storage cost per unit averages \$0.75 perunit. What is the full cost of the product?A) \$14B) \$22C) \$28.75D) \$28.00Answer: Explanation: \$11 + \$3 + \$8 + (\$40 x 15%) + \$0.75 = \$28.75
C
Diff: 2Objective: 2AACSB: Analytical thinking
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Chapter 8 / Exercise 26