For the month of January, Vista Corporation produced and sold 12,000 units of a product. Manufacturing and selling costs incurred during January were: Direct material and direct labor 4,800,000 Variable factory overhead 1,080,000 Fixed factory overhead 2,400,000 Variable selling costs 1,200,000 How much is the product’s unit cost under absorption costing ? Group of answer choices P 490 P 500 P510 P 520

For the month of January, Vista Corporation produced and sold 12,000 units of a product. Manufacturing and selling costs incurred during January were: Direct material and direct labor 4,800,000 Variable factory overhead 1,080,000 Fixed factory overhead 2,400,000 Variable selling costs 1,200,000 How much is the product’s unit cost under absorption costing ? Group of answer choices P 490 P 500 P510 P 520

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

For the month of January, Vista Corporation produced and sold 12,000 units of a product. Manufacturing and selling costs incurred during January were:

Direct material and direct labor 4,800,000

Variable factory overhead 1,080,000

Fixed factory overhead 2,400,000

Variable selling costs 1,200,000

How much is the product’s unit cost under absorption costing ?

Group of answer choices

P 490

P 500

P510

P 520

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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