Your Corporation manufactures a gas operated barbecue grill. The following information relates to operations for last year: Unit product cost under absorption costing $46 per unit Fixed manufacturing overhead cost for the year $300,000 Fixed selling and administrative cost for the year $125,000 Units (grills) produced and sold What is the variable costing unit product cost? 25,000 A. $29 B. $34 C. $58 D. $63 A company has sales of $100,000, ending finished goods inventory of $9,000, variable manufacturing costs of $50,000, and fixed manufacturing costs of $28,000 for the year. Assuming the company uses direct costing, the manufacturing margin for the year is: (A) 22,000 (B) 31,000 (C) 59,000 (D) 13,000
Your Corporation manufactures a gas operated barbecue grill. The following information relates to operations for last year: Unit product cost under absorption costing $46 per unit Fixed manufacturing overhead cost for the year $300,000 Fixed selling and administrative cost for the year $125,000 Units (grills) produced and sold What is the variable costing unit product cost? 25,000 A. $29 B. $34 C. $58 D. $63 A company has sales of $100,000, ending finished goods inventory of $9,000, variable manufacturing costs of $50,000, and fixed manufacturing costs of $28,000 for the year. Assuming the company uses direct costing, the manufacturing margin for the year is: (A) 22,000 (B) 31,000 (C) 59,000 (D) 13,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Your Corporation manufactures a gas operated barbecue grill. The following information
relates to operations for last year:
Unit product cost under absorption costing
$46 per unit
Fixed manufacturing overhead cost for the year $300,000
Fixed selling and administrative cost for the year $125,000
Units (grills) produced and sold
What is the variable costing unit product cost?
25,000
A. $29
B. $34
C. $58
D. $63
A company has sales of $100,000, ending finished goods inventory of $9,000, variable
manufacturing costs of $50,000, and fixed manufacturing costs of $28,000 for the year.
Assuming the company uses direct costing, the manufacturing margin for the year is:
(A) 22,000
(B) 31,000
(C) 59,000
(D) 13,000
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