Variable Manufacturing overhead is $1.00 per Unit

Problem 3

A small company that produces a single product has the following cost structure:

Number of units produced is 6,000

Direct Materials is $2.00 per unit

Direct Labor is $4.00 per unit

Variable Manufacturing overhead is $1.00 per Unit

Variable selling and Administrative Expenses is $3.00 per unit

Manufacturing Overhead is fixed for $30,000 per year

Selling and Administrative Expenses is $10,000 per year fixed

1.)  Compute the unit product cost under absorption costing method.

2.) Compute the unit product cost under variable/marginal costing method.

 

"Get yourself this Paper or a similar one at an unbeatable discount!"

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"FIRST15"

Order Now