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Grover Company Has the Following Data for the Production and Sale

Question 60

Multiple Choice

Grover Company has the following data for the production and sale of 2,000 units.
 Sales price per unit $ 800per unit  Fixed costs:  Marketing and administrative $400,000 per period  Manufacturing overhead $200,000 per period  Variable costs:  Marketing and administrative $50 per unit  Manufacturing overhead $80 per unit  Direct labor $100 per unit  Direct materials $ 200per unit \begin{array}{llr}\text { Sales price per unit } & \text {\$ 800per unit } \\\text { Fixed costs: } & & \\\text { Marketing and administrative } &\$ 400,000 \text { per period } \\\text { Manufacturing overhead } & \$ 200,000 \text { per period }\\\text { Variable costs: }\\\text { Marketing and administrative } & \$ 50 \text { per unit } \\\text { Manufacturing overhead } & \$ 80 \text { per unit } \\\text { Direct labor } & \$ 100 \text { per unit } \\\text { Direct materials } & \$ \text { 200per unit }\end{array}
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What is the full cost per unit of making and selling the product?


A) $430
B) $480
C) $530
D) $730

Correct Answer:

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