Problem: Current Attempt in Progress
Cullumber Corp. is a company that manufactures two varieties of candy bars: Milk Chocolate and Dark Chocolate. It is in the process of evaluating all of its budgeting needs for the year and will be utilizing a traditional costing system. The Milk Chocolate bars use the following resources: Milk Chocolate, $50,300; Wrapping Paper, $11313; Assembly Line Wages, $86,000; and Machine operators Wages, $47/600. The Dark Chocolate bars use the following resources: Dark Chocolate, $38,800; Paper Wrappers, $9,600: Assembly Line Wages, $73,800; and Machine operators Wages, $35,000. Cullumber assigns Manufacturing Overhead (MOH) costs based on 86% of Direct Labor (DL) costs.
What is the total cost per unit for the Milk Chocolate bars if Cullumber will produce 134,830 Milk Chocolate bars this year?