Lily's Pastries produces cupcakes, which sell for $5.00 each. During the current month, Lily produced 2,800 cupcakes, but only sold 2,300 cupcakes. The variable cost per cupcake was $3.10 and the sales commission per cupcake was $0.40. Total fixed manufacturing costs were $1,700 and total fixed marketing and administrative costs were $1,400. What is the product cost per cupcake under absorption costing?

Lily's Pastries produces cupcakes, which sell for $5.00 each. During the current month, Lily produced 2,800 cupcakes, but only sold 2,300 cupcakes. The variable cost per cupcake was $3.10 and the sales commission per cupcake was $0.40. Total fixed manufacturing costs were $1,700 and total fixed marketing and administrative costs were $1,400. What is the product cost per cupcake under absorption costing?

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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