UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

54. Correct answer c. The cost of one laminated putter head is $52 calculated as follows.

Production = 8,200 – 300 + 100 = 8,000 forged units

Direct labor = 8,000 x .25 hrs. = 2,000 hours for forged units

= 2,000 x 1.0 hrs. = 2,000 hours for laminated units

Variable O/H/hr. = $25,000 ÷ 4,000 hrs. = $6.25/hr.

Fixed O/H/hr. = $15,000 ÷ 4,000 hrs. = $3.75/hr.

Laminated putter head cost: Steel $ 5.00

Copper 15.00

Direct labor 22.00

Variable overhead 6.25

Fixed overhead 3.75

Total cost $52.00