Sweet Dreams Bakery produces brownies that sell for $6.00 each. In June, they produced 3,500 brownies but only sold 3,000 brownies. Their costs were: • . Variable cost per brownie: $3.50 Sales commission per brownie: $0.50 • Total fixed manufacturing costs: $2,100 • Total fixed marketing and administrative costs: $1,800 Calculate the product cost per brownie under absorption costing.
Sweet Dreams Bakery produces brownies that sell for $6.00 each. In June, they produced 3,500 brownies but only sold 3,000 brownies. Their costs were: • . Variable cost per brownie: $3.50 Sales commission per brownie: $0.50 • Total fixed manufacturing costs: $2,100 • Total fixed marketing and administrative costs: $1,800 Calculate the product cost per brownie under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sweet Dreams Bakery produces brownies that sell for $6.00 each. In
June, they produced 3,500 brownies but only sold 3,000 brownies.
Their costs were:
•
.
Variable cost per brownie: $3.50
Sales commission per brownie: $0.50
•
Total fixed manufacturing costs: $2,100
•
Total fixed marketing and administrative costs: $1,800
Calculate the product cost per brownie under absorption costing.
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