Fresh Farms Dairy produces yogurt cups that sell for $3.75 each. During October, they produced 6,000 yogurt cups but sold only 5,200 cups. The variable cost per yogurt cup is $1.85, and the sales commission is $0.25 per cup. Total fixed manufacturing costs are $4,500, and total fixed marketing and administrative costs are $3,600. What is the product cost per yogurt cup under absorption costing? A. $1.85 B. $2.60 C. $3.75 D. $2.85

Fresh Farms Dairy produces yogurt cups that sell for $3.75 each. During October, they produced 6,000 yogurt cups but sold only 5,200 cups. The variable cost per yogurt cup is $1.85, and the sales commission is $0.25 per cup. Total fixed manufacturing costs are $4,500, and total fixed marketing and administrative costs are $3,600. What is the product cost per yogurt cup under absorption costing? A. $1.85 B. $2.60 C. $3.75 D. $2.85

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

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