ABD's Breads produces loaves of bread, which sell for $6.00 each. During the current month, ABD produced 3,500 loaves of bread, but only sold 3,200 loaves. The variable cost per loaf was $2.50. Total fixed manufacturing costs were $2,100 and total fixed marketing and administrative costs were $1,500. What is the product cost per loaf under absorption costing?

ABD's Breads produces loaves of bread, which sell for $6.00 each. During the current month, ABD produced 3,500 loaves of bread, but only sold 3,200 loaves. The variable cost per loaf was $2.50. Total fixed manufacturing costs were $2,100 and total fixed marketing and administrative costs were $1,500. What is the product cost per loaf under absorption costing?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 8E: Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the...

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What is the product cost per loaf?
ABD's Breads produces loaves of bread, which sell for $6.00 each. During the current month, ABD produced 3,500 loaves of bread, but only sold 3,200 loaves. The variable cost per loaf was $2.50. Total fixed manufacturing costs were $2,100 and total fixed marketing and administrative costs were $1,500. What is the product cost per loaf under absorption costing?
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