Billy Bing Ping Pong Corporation manufactures a single product, premium pink pin

Question

Billy Bing Ping Pong Corporation manufactures a single product, premium pink ping pong balls. Each premium pink ping pong ball sells for $500.00 each. Selected operating information from last month is as follows:

Variable costs per unit:
Direct materials $17.50
Direct labor $5.33
Manufacturing overhead $2.50
Selling & administrative $125.00
Total variable costs per unit $150.33

Monthly Fixed costs:
Manufacturing overhead $27,500
Selling & administrative $173,500
Total fixed costs $201,000


Units in beginning inventory 0
Units produced 7,350
Units sold 7,243
Units in ending inventory 107

Under absorption costing, what is the unit product cost for one premium pink ping pong ball?

Explanation / Answer

Unit cost under ABsorption costing :- Direct Materials Cost per Unit =17.50 Direct Labor Cost Per Unit =5.33 Variable Manufacturing Cost Per unit =2.50 Fixed Manufacturing Overhead Per unit = 27500/7350 = $3.74 -------------------------------------------------------------------------- Unit cost = $29.07

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.