Question: Account - 12 Greg Corporation produces a single product and has the following cost structure: Number of units produced each year 13,000 Number of units sold: 20X1 13,000 Number of units sold: 20X2 8,000 Number of units sold: 20X3 18,000 Selling price $125 / unit Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 14 $ 18 $ 7 $3 $91,000 $ 1,10,000 1. Compute the unit product cost under absorption costing. 2. Compute the unit product cost under variable costing.

Question: Account - 12 Greg Corporation produces a single product and has the following cost structure: Number of units produced each year 13,000 Number of units sold: 20X1 13,000 Number of units sold: 20X2 8,000 Number of units sold: 20X3 18,000 Selling price $125 / unit Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 14 $ 18 $ 7 $3 $91,000 $ 1,10,000 1. Compute the unit product cost under absorption costing. 2. Compute the unit product cost under variable costing.

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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Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…
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