The company, Crafts 4 All, has these costs associated with the production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. Calculate the cost per unit under both the variable costing and absorption methods. Note: show your work!

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The company, Crafts 4 All, has these costs associated with the production of 12,000 units of accessory products:

  • direct materials, $19;
  • direct labor, $30;
  • variable manufacturing overhead, $15;
  • total fixed manufacturing overhead, $450,000.

Calculate the cost per unit under both the variable costing and absorption methods.

Note: show your work!

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