Give true answer the accounting question Lily's Pastries produces cupcakes, which sell for $5.00 each.During the current month, Lily produced 2,800 cupcakes, but onlysold 2,300 cupcakes. The variable cost per cupcake was $3.10 andthe sales commission per cupcake was $0.40. Total fixedmanufacturing costs were $1,700 and total fixed marketing andadministrative costs were $1,400.What is the product cost per cupcake under absorption costing?

Step 1: Define Absorption costing"Absorption costing" is a method where the both the cost fixed or…

Answered: Lily's Pastries produces cupcakes,…

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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