Direct materials used $29,440 $3,920
Direct labor 6,8002,560
Overhead 7,360 4,800
1. Compute the unit cost for each department.
2. Compute the total unit cost for the Vintage Records Company order.
3. The selling price for this order was $14 per unit. Was the selling price adequate? List the assumptions and/or computations upon which you based your answer. What suggestions would you make to Disco’s management about the pricing of future orders?
4. Compute the prime costs and conversion costs per unit for each department.
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