Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During 2019, 50,000 units were produced, and 40,000 units were sold. Costs for 2019 were: Fixed Portion Variable Portion Direct materials Direct labor Manufacturing overhead Selling and administrative expenses $0 $2.00 per unit produced $0 $1.50 per unit produced $50,000 $0.75 per unit produced $ 80,000 $0.25 per unit sold Under absorption costing, the total period costs are: a. $90,000. b. $50,000. c. $80,000. d. $130,000.
Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During 2019, 50,000 units were produced, and 40,000 units were sold. Costs for 2019 were: Fixed Portion Variable Portion Direct materials Direct labor Manufacturing overhead Selling and administrative expenses $0 $2.00 per unit produced $0 $1.50 per unit produced $50,000 $0.75 per unit produced $ 80,000 $0.25 per unit sold Under absorption costing, the total period costs are: a. $90,000. b. $50,000. c. $80,000. d. $130,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Dart Inc. began operations on January 1, 2019. Dart sells a single
product for $10 per unit. During 2019, 50,000 units were produced, and
40,000 units were sold.
Costs for 2019 were:
Fixed Portion
Variable Portion
Direct materials
Direct labor
Manufacturing overhead
Selling and administrative expenses
$0 $2.00 per unit produced
$0 $1.50 per unit produced
$50,000 $0.75 per unit produced
$ 80,000 $0.25 per unit sold
Under absorption costing, the total period costs are:
a. $90,000.
b. $50,000.
c. $80,000.
d. $130,000.
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