GUTIERREZ COMPANY  

             

Basic Production Information: Sportsman Expedition    

Direct materials cost per unit  $            20   $            28     

Direct labor cost per unit    $            15   $            19     

Sales price per unit    $            82   $          105     

Expected production per month (units)           1,200               960     

             

Overhead cost pools:          

Setup cost      $       2,600       

Quality control             5,500       

Maintenance               3,080       

Total monthly overhead    $     11,180       

             

Cost drivers:   Sportsman Expedition Total  

Number of setups                  14                 26                 40   

Number of inspections                140               300               440   

Number of machine hours             1,400            1,400            2,800   

             

 

 

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