Give true solution for this accounting question Lily's Pastries produces cupcakes, which sell for $5.30 each. During the currentmonth, Lily produced 3,100 cupcakes, but only sold 2,700 cupcakes. Thevariable cost per cupcake was $3.00 and the sales commission per cupcake was$0.40. Total fixed manufacturing costs were $1,700 and total fixed marketingand administrative costs were $1,400. What is the product cost per cupcakeunder absorption costing?A. $5.30B. $3.00C. $3.55D. $5.85

Step 1: Define Absorption CostingUnder absorption costing, not only the variable cost but also the…

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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