EXERCISE 2-13 (15 MINUTES)

3. Per Unit Total

Direct materials... $8.00 (Same) $400,000 ** (Changed)

Rent, factory building ... $2.40 * (Changed) $120,000 (Same)

* $120,000 ÷ 50,000 units = $2.40 per unit.

** $8 per unit × 50,000 units = $400,000.