Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs: Direct materials per unit Direct labor per unit $ 60 $ 22 Variable overhead per unit Fixed overhead for the year Selling and administrative costs: Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 8 $ 5,28,000 $ 11 $ 1,05,000 Assume the company uses variable costing. Determine its product cost per unit.

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs: Direct materials per unit Direct labor per unit $ 60 $ 22 Variable overhead per unit Fixed overhead for the year Selling and administrative costs: Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 8 $ 5,28,000 $ 11 $ 1,05,000 Assume the company uses variable costing. Determine its product cost per unit.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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