Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 12,000 9,000 Units sold 9,000 10,000 Units in ending inventory 3,000 2,0000 The unit product cost under variable costing in Year 1 is closest to: $26.00 $57.00 $21.00 $62.00
Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 12,000 9,000 Units sold 9,000 10,000 Units in ending inventory 3,000 2,0000 The unit product cost under variable costing in Year 1 is closest to: $26.00 $57.00 $21.00 $62.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Neef Corporation has provided the following data for its two most recent years of operation:
The unit product cost under variable costing in Year 1 is closest to:
| Selling price per unit | $ | 84 |
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 12 |
| Direct labor | $ | 5 |
| Variable manufacturing |
$ | 4 |
| Fixed manufacturing overhead per year | $ | 432,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 5 |
| Fixed selling and administrative expense per year | $ | 61,000 |
| Year 1 | Year 2 | ||
| Units in beginning inventory | 0 | 3,000 | |
| Units produced | 12,000 | 9,000 | |
| Units sold | 9,000 | 10,000 | |
| Units in ending inventory | 3,000 | 2,0000 |
The unit product cost under variable costing in Year 1 is closest to:
|
$26.00
|
||
|
$57.00
|
||
|
$21.00
|
||
|
$62.00
|
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