Sprinkle Co. sells its product for $60 per unit. During 2012, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under variable costing is: a. $39. b. $41. c. $24. d. $27.

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 24E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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Sprinkle Co. sells its product for $60 per unit. During 2012, it produced
60,000 units and sold 50,000 units (there was no beginning inventory).
Costs per unit are: direct materials $15, direct labor $9, and variable
overhead $3. Fixed costs are: $720,000 manufacturing overhead, and
$90,000 selling and administrative expenses.
The per-unit manufacturing cost under variable costing is:
a. $39.
b. $41.
c. $24.
d. $27.
Transcribed Image Text:Sprinkle Co. sells its product for $60 per unit. During 2012, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under variable costing is: a. $39. b. $41. c. $24. d. $27.
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