Mentor Corp. has provided the following information for the current year: Units produced Sale price Direct materials 3,500 units $200 per unit $70 per unit Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $55 per unit $20 per unit $350,000 per year $30 per unit $150,000 per year Calculate the unit product cost using absorption costing. A. $245 B. $275 C. $55 D. $145

Mentor Corp. has provided the following information for the current year: Units produced Sale price Direct materials 3,500 units $200 per unit $70 per unit Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $55 per unit $20 per unit $350,000 per year $30 per unit $150,000 per year Calculate the unit product cost using absorption costing. A. $245 B. $275 C. $55 D. $145

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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