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Test Bank Economic Analysis 14th Edition by Newnan, Eschenbach, Lavelle, Lewis
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5.0(1)5.045mei 20212020/2021A+
- CHAPTER 2 
ESTIMATING ENGINEERING COSTS AND BENEFITS 
 
						 
Reference: Table 1 
Tech Engineering in TN is making a product for the overseas market. 
The following cost data for the product has been compiled. 
Item	Cost 
Selling price	$167 
Materials and purchased parts	$25/unit 
Direct Labor	 2 hrs at $20 per hour 
Fixed Cost	$1,400,000 
 
	 
2.1. If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit. 
A) $72 
B) $97 
C) $65 
D) None of these 
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$7.99 Meer Info
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