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CaHeK987 [17]
3 years ago
6

Sprinkle Co. sells its product for $20 per unit. During 2013, it produced 60,000 units and sold 50,000 units (there was no begin

ning inventory). Costs per unit are: direct materials $5, direct labor $3, and variable overhead $1. Fixed costs are: $240,000 manufacturing overhead, and $30,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is
Business
2 answers:
lara [203]3 years ago
7 0

Answer:

<em>$13</em>

<em />

Explanation:

The fix manufacturing cost per unit can be calculated as following:

+) Fixed manufacturing cost per unit = Fixed manufacturing cost/ Units produced

= 240,000/ 60,000 = $4

The variable costs per unit include:

+) Direct materials per unit: $5

+) Direct labor per unit: $3

+) Variable overhead: $1

=> The per unit manufacturing cost under variable costing is: 5 + 3 + 1 = $9

<em>The per unit manufacturing cost under absorption costing is = Fixed manufacturing cost per unit + The per unit manufacturing cost under variable costing</em>

<em>= 4 + 9 = $13</em>

sergejj [24]3 years ago
7 0

Answer:Am nevoie de Puncte

Explanation:

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3 years ago
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Incomplete question. Hence, In answered from a general economic perspective.

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