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a_sh-v [17]
4 years ago
9

The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7.60/unit; direct labor,

$10.60/unit; and manufacturing overhead, $309,600 + $8.60/unit. Required: If anticipated production for 2013 is 36,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Business
1 answer:
Advocard [28]4 years ago
5 0

Answer: The answer is as follows:

Explanation:

Given that,

Raw material = $7.60/unit

Direct labor = $10.60/unit

Manufacturing overhead = $8.60/unit

(1) Unit cost under variable costing = Raw material + Direct labor + variable Manufacturing overhead

= 7.6 + 10.6 + 8.6

= 26.8

(2) Unit cost under absorption costing = Raw material + Direct labor + variable Manufacturing overhead + fixed Manufacturing overhead

= 7.6 + 10.6 + 8.6 + 8.6

= 35.4

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4 0
3 years ago
The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c
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Answer:

Australia has purchasing-power parity with the U.S.

Explanation:

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The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.  

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3 years ago
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