Sweet Bites Bakery produces cookies, which sell for $4.50 each. During the current month, the bakery produced 3,500 cookies, but only sold 3,000 cookies. The variable cost per cookie was $2.25, and the sales commission per cookie was $0.35. Total Fixed Manufacturing Costs = $2,200 Total Fixed Marketing and Administrative Costs = $1,800 Compute the product cost per cookie under absorption costing.
Sweet Bites Bakery produces cookies, which sell for $4.50 each. During the current month, the bakery produced 3,500 cookies, but only sold 3,000 cookies. The variable cost per cookie was $2.25, and the sales commission per cookie was $0.35. Total Fixed Manufacturing Costs = $2,200 Total Fixed Marketing and Administrative Costs = $1,800 Compute the product cost per cookie under absorption 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
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 62P
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Transcribed Image Text:Sweet Bites Bakery produces cookies, which sell for $4.50 each. During the
current month, the bakery produced 3,500 cookies, but only sold 3,000
cookies. The variable cost per cookie was $2.25, and the sales commission
per cookie was $0.35.
Total Fixed Manufacturing Costs = $2,200
Total Fixed Marketing and Administrative Costs = $1,800
Compute the product cost per cookie under absorption costing.
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