Sheffield Corp. sells its product for $70 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is: a. $41 b. $28 c. $40 d. $27
Sheffield Corp. sells its product for $70 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is: a. $41 b. $28 c. $40 d. $27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheffield Corp. sells its product for $70 per unit.
During 2016, it produced 60,000 units and sold
50,000 units (there was no beginning inventory).
Costs per unit are: direct materials $15, direct labor
$12, and variable overhead $1. Fixed costs are:
$720,000 manufacturing overhead, and $90,000
selling and administrative expenses. The per-unit
manufacturing cost under absorption costing is:
a. $41
b. $28
c. $40
d. $27
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