Under absorption costing? Bruce Corp. operates two plants, Plant A and Plant B. Last year, Bruce Corp. reported acontribution margin of $40,000 for Plant A. Plant B had sales of $200,000 and a contributionmargin ratio of 40%. The net operating income for the company was $27,000 and traceablefixed expenses for the two stores totaled $50,000. Bruce Corp.'s common fixed expenses were:Browne Inc., which has only one product, has provided the following data concerning its mostrecent month of operation:Selling price$141Units in beginning inventory 0Units produced6,200Units sold5,900Units in ending inventory300Variable costs per unit:Direct materialsDirect labor$40$47Variable manufacturing overhead $4Variable selling and administrative $7Fixed costs:Fixed manufacturing overhead $167,400Fixed selling and administrative $82,600What is the unit product cost for the month under absorption costing?

Step 1: Definition of Absorption CostingAbsorption costing is a method where all manufacturing costs…

Answered: Bruce Corp. operates two plants, Plant…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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