Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun’s operations for last year:
Unit product cost under variable costing…..$5.20 per unit
Fixed manufacturing overhead cost for the year…..$260,000
Fixed selling and administrative cost for the year…..$180,000
Units (calculators) produced and sold…..400,000
What is Shun’s unit product cost under absorption costing for last year?
Answer
A $4.10
B $4.55
C $5.85
D $6.30
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Units in beginning Inventory 0
Units produced 1,900
Units sold 1,700
Units in ending inventory 200
Variable costs per unit:
Direct materials $33
Direct labor $32
Variable manufacturing overhead $2
Variable selling and administrative $6
Fixed costs:
Fixed manufacturing overhead $72,200
Fixed selling and administrative $6,800