The manufacturing cost element is responsible for fluctuating unit cost is because of the raise in manufacture.
Explanation:
The elevation in Manufacturing Cost is being included as it is being incurred instead of charging it on a predetermined basis. The standard cost of direct materials are calculated by multiplying the direct materials standard price by the direct materials standard quantity.
The unit cost is determined by combining the variable cost and fixed cost and divided by the total number of units produced.
Unit costing acts as a guide to the producer and helps in formulating a definite production policy.
