Question

Burns Company incurred the following costs during the year: direct materials $20 per unit; direct labor $14 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per unit; fixed manufacturing overhead $128,000; and fixed selling and administrative costs $10,000. Burns produced 8,000 units and sold 6000 units. Determine the manufacturing cost per unit under (a) absorption costing and (b) variable costing

Answer 1

the correct answer would be b