Comet? Canisters, Inc. has collected the following data for the current? year: ... What is the unit product cost using absorption? costing? (Round your answer to the nearest? cent.)
Comet? Canisters, Inc. has collected the following data for the current? year:
Beginning Finished Goods Inventory | 60 units |
Units produced | 550 units |
Units sold | 610 units |
Sales price | $140 per unit |
Direct materials | $32 per unit |
Direct labor | $18 per unit |
Variable manufacturing overhead | $19 per unit |
Fixed manufacturing overhead | $11,200 per year |
Variable selling and administrative costs | $4 per unit |
Fixed selling and administrative costs | $12,500 per year |
Product costs in absorption costing includes direct materials, direct labor, variable manufacturing overhead and fixed manufacturing overhead.
First, the fixed manufacturing overhead per unit needs to be determined by dividing yearly fixed manufacturing overhead cost by the number of units produced. $11,200/550 units = $20.36 (rounded) per unit fixed manufacturing overhead.
The answer can then be found by adding the data points mentioned above;
$32 + $18 + $19 + $20.36 = $89.36 per unit product cost under absorption costing.
A) $89.36
You might also like to view...
Which of the following creates a revocable living trust?
A. Doctrine of cy pres B. Express trust C. Totten trust D. Spendthrift trust
In a break-even problem, what would be expected to happen to the break-even quantity if sales price is increased (assume fixed and variable costs remain constant)?
a. Increase b. Decrease c. Neither increase nor decrease d. Impossible to know how break-even quantity would change
For some agile projects, ________ are established, which is the maximum budget that should not be exceeded in the development of a given product or service.
A. Contingencies B. Ceilings C. Scrum logs D. Project accounts E. Agile accounts
Marsden Company has three departments occupying the following amount of floor space: Department 117,000?sq. ft.Department 210,200?sq. ft.Department 327,000?sq. ft.How much store rent should be allocated to Department 3 if total rent is equal to $97,000? (Do not round intermediate calculations.)
A. $27,000 B. $18,255 C. $48,321 D. None of the answers are correct.