Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable administrative costs Fixed administrative costs Total Cost Per Unit $6.50 4.00 2.00 2.50 1.50 4.50 $21.00 During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as follows: June's income using absorption costing was $13,300. The income for June, if variable costing had been used, would have been $12,775. The number of ur was Select one: O a. 790 units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Cost per Unit Breakdown

| Cost Per Unit                      |
|------------------------------------|
| Direct materials         | $6.50   |
| Direct labor             | $4.00   |
| Variable manufacturing overhead    | $2.00   |
| Fixed manufacturing overhead       | $2.50   |
| Variable administrative costs      | $1.50   |
| Fixed administrative costs         | $4.50   |
| **Total**                 | **$21.00** |

### Scenario Analysis

During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as outlined in the table.

- **June’s income using absorption costing was $13,300.**
- **If variable costing had been used, the income for June would have been $12,775.**

### Question

What was the number of units Carson produced during June? 

Select one:
- a. 790 units
- b. 925 units
- c. 1,210 units
- d. 1,075 units
Transcribed Image Text:### Cost per Unit Breakdown | Cost Per Unit | |------------------------------------| | Direct materials | $6.50 | | Direct labor | $4.00 | | Variable manufacturing overhead | $2.00 | | Fixed manufacturing overhead | $2.50 | | Variable administrative costs | $1.50 | | Fixed administrative costs | $4.50 | | **Total** | **$21.00** | ### Scenario Analysis During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as outlined in the table. - **June’s income using absorption costing was $13,300.** - **If variable costing had been used, the income for June would have been $12,775.** ### Question What was the number of units Carson produced during June? Select one: - a. 790 units - b. 925 units - c. 1,210 units - d. 1,075 units
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