HATS CHAINS

Cost per Cost per

Direct Material # Total P Direct Material #
each each
Paper 15.00 0.05 0.75 Paper 10.00 0.05

Stickers 60.00 0.01 0.60 Stickers 80.00 0.01

Total Direct Material 1.35 Total Direct Material

# hrs Cost/hr. Total P # hrs Cost/hr.
Cutting Labor - 15.00 - Cutting Labor 0.15 15.00

Assembly Labor 0.25 15.00 3.75 Assembly Labor 0.30 15.00

Finishing Labor 0.25 15.00 3.75 Finishing Labor 0.15 15.00

Total Direct Labor 0.50 15.00 7.50 Total Direct Labor 0.60 15.00
Cost/unit
Cost/unit
Cost Cost driver of cost
of
driver
Mfg Overhead * 15.00 0.28 4.16 Mfg Overhead * 10.00 0.28

Total Mfg. Overhead 4.16 Total Mfg. Overhead

Total Product Cost 13.01 Total Product Cost
Cost per unit 0.87 Cost per unit
Selling Price per unit 1.00 Selling Price per unit

HATS CHAINS
Cost per Cost per
Direct Material # Total P Direct Material #
each each
Paper 15.00 0.05 0.75 Paper 10.00 0.05

Stickers 60.00 0.01 0.60 Stickers 80.00 0.01

Total Direct Material 1.35 Total Direct Material

# hrs Cost/hr. Total P # hrs Cost/hr.
Cutting Labor - 15.00 - Cutting Labor 0.15 15.00

Assembly Labor 0.25 15.00 3.75 Assembly Labor 0.30 15.00

Finishing Labor 0.25 15.00 3.75 Finishing Labor 0.15 15.00

Total Direct Labor 0.50 15.00 7.50 Total Direct Labor 0.60 15.00
Cost/unit
Cost/unit
Cost Cost driver of cost
of
driver
Mfg Overhead * 0.50 6.05 3.03 Mfg Overhead * 0.60 6.05

Total Mfg. Overhead 3.03 Total Mfg. Overhead

Total Product Cost 11.88 Total Product Cost
Cost per unit 0.79 Cost per unit
Selling Price per unit 0.91 Selling Price per unit
 Total P

0.50
0.80

1.30
Total P
2.25
4.50
2.25

9.00

Total P

2.80

2.80
13.10
1.31
1.51

Total P

0.50
0.80

1.30
Total P
2.25
4.50
2.25

9.00

Total P

3.63

3.63
13.93
1.39

1.60