Sierra Manufacturing produces a single product and has the following cost structure: Description Amount Number of units produced each year 10,000 Variable Costs per Unit: Direct materials $65 Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed Costs per Year: Fixed manufacturing overhead Fixed selling and administrative expense What is the absorption costing unit product cost? a. $160.00 $30 $25 $18 $400,000 $300,000 b. $180.00 c. $120.00 d. $95.00
Sierra Manufacturing produces a single product and has the following cost structure: Description Amount Number of units produced each year 10,000 Variable Costs per Unit: Direct materials $65 Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed Costs per Year: Fixed manufacturing overhead Fixed selling and administrative expense What is the absorption costing unit product cost? a. $160.00 $30 $25 $18 $400,000 $300,000 b. $180.00 c. $120.00 d. $95.00
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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Sierra Manufacturing produces a single product and has the following cost structure: please provide answer the general accounting question

Transcribed Image Text:Sierra Manufacturing produces a single product and has the following cost
structure:
Description
Amount
Number of units produced each year
10,000
Variable Costs per Unit:
Direct materials
$65
Direct labor
Variable manufacturing overhead
Variable selling and administrative expense
Fixed Costs per Year:
Fixed manufacturing overhead
Fixed selling and administrative expense
What is the absorption costing unit product cost?
a. $160.00
$30
$25
$18
$400,000
$300,000
b. $180.00
c. $120.00
d. $95.00
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