A unit of cake uses various direct materials, direct labor and indirect manufacturing costs. Indirect costs use a rate of direct labor hours. Data: each cake consumes 10 ounces of materials at a negotiated cost of 0.05. each employee takes 0.10 of an hour to produce a cake. employee rate= $10.00 (for each quarter) variable costs= $16,000 fixed costs = $116,000 labor hours for four quarters of the year = 8,197 Calculate the estimated total cost of manufacturing one unit of cake. Prepare a cost per unit budget

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter2: Basic Managerial Accounting Concepts
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Problem 38E: Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month:...
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A unit of cake uses various direct materials, direct labor and indirect manufacturing costs. Indirect costs use a rate of direct labor hours.

Data:
each cake consumes 10 ounces of materials at a negotiated cost of 0.05.
each employee takes 0.10 of an hour to produce a cake.
employee rate= $10.00 (for each quarter)
variable costs= $16,000
fixed costs = $116,000
labor hours for four quarters of the year = 8,197

Calculate the estimated total cost of manufacturing one unit of cake. Prepare a cost per unit budget

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