Business, 25.10.2019 04:43 cupcake3103670

We are a contract manufacturer; we make a variety of cell phones. we use normal absorption costing and allocate overhead (oh) costs using direct labor hours (dlhs). in january 2015, we estimated that our 2015 total oh cost would be $8,710,000 (our oh is all fixed). we also estimated our total 2015 direct-labor requirements at 310,000 dlhs. our direct labor cost is $28.10 per dlh. our normal absorption cost per unit of cell phone model a-331-dt is $41.20. this includes direct-labor cost of $3.65 per unit. our management would like to switch to using variable costing. what would be the unit cost of model a-331-dt if we use variable costing?

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We are a contract manufacturer; we make a variety of cell phones. we use normal absorption costing...

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