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Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the following total costs: Direct materials $150,000 Direct labor 50,000 Variable overhead 30,000 Fixed overhead 220,000 Required: If required, round your answers to the nearest cent. 1. Calculate the prime cost per unit. $fill in the blank 1 per unit

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Answer:

1. $3,600

2. $6,100

3. $4,100

4. $8,500

5. Variable units costs stay the same. Fixed overheads are already incurred so they are not affected. So Variable Costs vary with the number of additional units produced that is 5,000 units.  Product Cost = $8,500

Explanation:

Hi, I have attached the full question as pdf below !

Prime Cost is the total of direct materials and direct labor.

Conversion Costs is the total of direct labor and overhead costs.

Variable Costs is the total of direct labor, direct materials and variable overheads.

Total Product Cost is the Sum of all Manufacturing Costs

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