Overview
Assignment Question(s):
Q1: Unite Corporation produces a single product and has the following cost structure:
Number of units produced each year. | 7,000 | |
Variable costs per unit: | ||
Direct materials | $ | 51 |
Direct labor | $ | 12 |
Variable manufacturing overhead | $ | 2 |
Variable selling and administrative expense | $ | 5 |
Fixed costs per year: | ||
Fixed manufacturing overhead | $ | 441,000 |
Fixed selling and administrative expense | $ | 112,000 |
Required: Compute unit product cost under absorption costing:
Answer:
Q2: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units produced | 6,000 | |
Units sold | 5,600 | |
Variable costs per unit: | ||
Direct materials | $ | 38 |
Direct labor | $ | 53 |
Variable manufacturing overhead | $ | 3 |
Variable selling and administrative expense | $ | 11 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 60,000 |
Fixed selling and administrative expense | $ | 28,000 |
Required: Compute the total period cost for the month under variable costing
Answer: