Amarantha Corp. has provided the following data for the current year. Units Produced 2,500 units Sales Price $200 per unit Direct materials $75 per unit Direct labor $65 per unit Variable manufacturing overhead $25 per unit Fixed manufacturing overhead $225,000 per year Variable selling and administrative costs $30 per unit Fixed selling and administrative costs $150,000 per year Calculate the unit product cost using absorption costing and variable costing.
Amarantha Corp. has provided the following data for the current year. Units Produced 2,500 units Sales Price $200 per unit Direct materials $75 per unit Direct labor $65 per unit Variable manufacturing overhead $25 per unit Fixed manufacturing overhead $225,000 per year Variable selling and administrative costs $30 per unit Fixed selling and administrative costs $150,000 per year Calculate the unit product cost using absorption costing and variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amarantha Corp. has provided the following data for the current year.
| Units Produced | 2,500 units |
| Sales Price | $200 per unit |
| Direct materials | $75 per unit |
| Direct labor | $65 per unit |
| Variable manufacturing |
$25 per unit |
| Fixed manufacturing overhead | $225,000 per year |
| Variable selling and administrative costs | $30 per unit |
| Fixed selling and administrative costs | $150,000 per year |
Calculate the unit product cost using absorption costing and variable costing.
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