Answer:
a. $55
Explanation:
The cost per unit of a product is the cost for creating one item and it is calculated by diving the total costs of production by the number of units produced. The total costs of production is determine by adding up the costs of the direct materials, the direct labor and the manufacturing overhead used which include for example, indirect labor, indirect materials and utilities.
To determine the cost per unit in this case, we have to consider that the conversion costs include direct labor costs and manufacturing overhead costs and because of that the amount of this cost is included in the total cost of production. According to this:
Total cost per unit= total cost of production/number of units produce
Total cost per unit= $132,000/2,400
Total cost per unit= $55
