Toys Unlimited has the following cost data available. Direct Materials are $99 per unit. Direct Labor is $55 per unit. Variable Manufacturing Costs are $25 per unit. Fixed Manufacturing Costs are $200,000. Toys Unlimited sold 3,500 units. They produced 4,000 units. Using Absorption costing, what is the production cost per unit? a. $154. b. $179. c. $229. d. $236.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Toys Unlimited has the following cost data available.
Direct Materials are $99 per unit.
Direct Labor is $55 per unit.
Variable Manufacturing Costs are $25 per unit.
Fixed Manufacturing Costs are $200,000.
Toys Unlimited sold 3,500 units.
They produced 4,000 units.
Using Absorption costing, what is the production cost per unit?
a. $154.
b. $179.
c. $229.
d. $236.
Transcribed Image Text:Toys Unlimited has the following cost data available. Direct Materials are $99 per unit. Direct Labor is $55 per unit. Variable Manufacturing Costs are $25 per unit. Fixed Manufacturing Costs are $200,000. Toys Unlimited sold 3,500 units. They produced 4,000 units. Using Absorption costing, what is the production cost per unit? a. $154. b. $179. c. $229. d. $236.
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