Pinnacle Manufacturing provides the following information for the current fiscal year: Item Units produced Sale price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs Value 4,800 units $175 per unit $48 per unit $37 per unit $15 per unit $288,000 per year $22 per unit $192,000 per year Calculate the unit product cost using absorption costing. A. $100 B. $122 C. $160 D. $182

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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General accounting question

Pinnacle Manufacturing provides the following information for the current fiscal year:
Item
Units produced
Sale price
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative costs
Fixed selling and administrative costs
Value
4,800 units
$175 per unit
$48 per unit
$37 per unit
$15 per unit
$288,000 per year
$22 per unit
$192,000 per year
Calculate the unit product cost using absorption costing.
A. $100 B. $122 C. $160 D. $182
Transcribed Image Text:Pinnacle Manufacturing provides the following information for the current fiscal year: Item Units produced Sale price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs Value 4,800 units $175 per unit $48 per unit $37 per unit $15 per unit $288,000 per year $22 per unit $192,000 per year Calculate the unit product cost using absorption costing. A. $100 B. $122 C. $160 D. $182
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