Wyatt Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material $3.00 per unit Direct labor 2.50 per unit Variable manufacturing overhead 1.80 per unit Fixed manufacturing overhead 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses .25 per unit Fixed SG&A expense $75,000 per year During its
first year of operations Wyatt manufactured 51,000 units and sold 48,000 . The selling price per unit was $25 . All costs were equal to standard. Refer to Wyatt Corporation. Under absorption costing, the standard production cost per unit for the current year was
a. $ 7.30.
b. $11.30.
c. $11.55.
d. $13.05.
B
DM + DL + VFOH + FFOH = Standard Cost per Unit
$3.00 + $2.50 + $1.80 + $4.00 = $11.30
You might also like to view...
The Smith Company used after-sale interviews with its customers to examine how well the customers were served by the sales and service staff of the company. When the Smith Company follows this procedure, the company is attempting to use feedback as a means to improve communications.
Indicate whether the statement is true or false
Explain what is meant when it is said that communication can be symmetrical or complementary.
What will be an ideal response?
Depreciation of fixed assets is considered to be a discretionary cost
Indicate whether the statement is true or false
A(n) ____________________ is the process used by an accountant to ensure consistency between the balance shown on the bank statement for a particular account and the balance shown on the accounting records
Fill in the blank(s) with correct word