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Home > Business & Careers > Accounting   »   Full-cost base per unit

 
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Old Nov 12, 2007, 11:33 AM
JMR12345
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Full-cost base per unit

Any guidance on this would be great!

Schlickau Company manufactures basketball backboards. The following information pertains to the company's normal operations per month:
Output units 15,000 boards
Machine hours 4,000 hours
DL hours 5,000 hours

DL rate $12 per hour
DM rate $100 per unit
Variable OH $150,000
Fixed OH $300,000
Product and
Process design costs $200,000
Marketing and
distribution costs $250,000

Required:

a.) for long-run pricing, what is the full-cost base per unit?
b.) schlickau company is approached by an overseas city to fulfill a one-time only special order for 1,000 units. all cost relationships remain the same except for an additional one-time setup charge of $40,000. No additional design, marketing, or distribution costs will be incurred. What is the minimum acceptable bid per unit on this one-time-only special order?

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