Your Client, a Factory That Produces Chips and Salsa, Uses

Multiple Choice

Your client, a factory that produces chips and salsa, uses traditional costing, and you are attempting to calculate total cost per unit. They have the following costs (same for each item) : Direct Materials (DM) , $56,280; Direct Labor (DL) , $63,460; and their Manufacturing Overhead (MOH) will be 82% of their DL cost. They produced 33,470 units of glass salsa jars and 42,000 packets of chips during the period. What is their total cost per unit for salsa?

A) $4.09
B) $4.36
C) $5.13
D) $5.47