Overtime produces and sells a mantel clock for $200 per unit. In 2020, 41,000 clocks were produced and 37,000 were sold. Other information for the year includes: Direct materials $42.00 per unit Direct manufacturing labor $8.00 per unit Variable manufacturing costs $5.00 per unit Sales commissions $14.50 per unit Fixed manufacturing costs $64.00 per unit Administrative expenses, all fixed $38.50 per unit
Overtime produces and sells a mantel clock for $200 per unit. In 2020, 41,000 clocks were produced and 37,000 were sold. Other information for the year includes:
Direct materials $42.00 per unit
Direct manufacturing labor $8.00 per unit
Variable
Sales commissions $14.50 per unit
Fixed manufacturing costs $64.00 per unit
Administrative expenses, all fixed $38.50 per unit
What is the inventoriable cost per unit using absorption costing and variable costing?
| a. |
$119.00, $55.00 |
|
| b. |
$117.00, $53.00 |
|
| c. |
$49.00, $51.00 |
|
| d. |
$53.00, $42.00 |
Step by step
Solved in 2 steps
