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,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost.
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Can you please give answer?
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