TechSteel Inc. produces high-performance steel rods for the automotive industry. In 2021, its first year of operations, the company produced 10,000 tons of steel rods but sold only 6,000 tons. In 2022, it again produced 10,000 tons and sold 14,000 tons (clearing all inventory). Additional data: • Selling price per ton: $1,800 • Variable manufacturing cost per ton: $350 • Variable selling expenses per ton: $500 Fixed manufacturing costs: $4,500,000 Fixed administrative expenses: $1,200,000 What is the unit manufacturing cost under absorption costing in 2021?

TechSteel Inc. produces high-performance steel rods for the automotive industry. In 2021, its first year of operations, the company produced 10,000 tons of steel rods but sold only 6,000 tons. In 2022, it again produced 10,000 tons and sold 14,000 tons (clearing all inventory). Additional data: • Selling price per ton: $1,800 • Variable manufacturing cost per ton: $350 • Variable selling expenses per ton: $500 Fixed manufacturing costs: $4,500,000 Fixed administrative expenses: $1,200,000 What is the unit manufacturing cost under absorption costing in 2021?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 31P: Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The...

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