Material 2000 Direct Labor Hours 3 Supervisor Salary 30000 H

Material $20.00

Direct Labor Hours 3

Supervisor Salary 30,000

Hourly wage per hour 5.00

If the company produces 250 watches pery year.

What is fixed cost per watch

What is the variable cost per watch

What is the unit product cost

Direct labour hours = 5

Hourly wage per hour = 5

Labour Cost per watch = 3*5 = $15

Material Per watch = $ 20

Supervisor salary = $ 30,000

Fixed Cost = Supervisor salary = $ 30,000

Variable cost per watch = 20+ 15 = $35

Variable cost for 259 watches = 35*250 = $8750

Total Cost for 250 watches = 30,000+8750 = $38,750