Calculation of Variable cost per unit.
Using the high-low method, what is the variable cost per unit?
The Nelson Company experienced the following costs in 2007:
|
Direct materials
|
$2.25/unit
|
|
Direct labor
|
$4.10/unit
|
|
Variable manufacturing overhead
|
$.75/unit
|
|
Variable selling
|
$3.00/unit
|
|
Fixed manufacturing overhead
|
$60,000
|
|
Fixed selling
|
$35,000
|
|
Fixed administrative
|
$20,000
|