Silverstone Manufacturing, which produces a single product, has provided the following data for its most recent month of operations: • Number of units produced: 10,000 Variable costs per unit: о Direct materials: $120 ° Direct labor: $75 ° о Variable manufacturing overhead: $8 Variable selling and administrative expense: $12 Fixed costs: о ○ Fixed manufacturing overhead: $300,000 Fixed selling and administrative expense: $500,000 There were no beginning or ending inventories. What is the absorption costing unit cost?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Silverstone Manufacturing, which produces a single product, has provided
the following data for its most recent month of operations:
•
Number of units produced: 10,000
Variable costs per unit:
о
Direct materials: $120
°
Direct labor: $75
°
о
Variable manufacturing overhead: $8
Variable selling and administrative expense: $12
Fixed costs:
о
○
Fixed manufacturing overhead: $300,000
Fixed selling and administrative expense: $500,000
There were no beginning or ending inventories.
What is the absorption costing unit cost?
Transcribed Image Text:Silverstone Manufacturing, which produces a single product, has provided the following data for its most recent month of operations: • Number of units produced: 10,000 Variable costs per unit: о Direct materials: $120 ° Direct labor: $75 ° о Variable manufacturing overhead: $8 Variable selling and administrative expense: $12 Fixed costs: о ○ Fixed manufacturing overhead: $300,000 Fixed selling and administrative expense: $500,000 There were no beginning or ending inventories. What is the absorption costing unit cost?
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