Neef Corporation has provided the following data for its two most recent years o

Question

Neef Corporation has provided the following data for its two most recent years of operation: 84 Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor 4 Variable manufacturing overhead Fixed manufacturing overhead per year $432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $ 61,000 Units in beginning inventory Units produced Units sold Units in ending inventory Year 1 Year 2 0 3,000 12,000 9,000 9,000 10,000 3,000 2,0000 The unit product cost under absorption costing in Year 2 is closest to

Explanation / Answer

UNIT PRODUCT COST UNDER ABSORPTION COSTING:

COST PER UNIT UNDER ABSORPTION COSTING = $69IN YEAR 2

PARTICULARS AMOUNT DIRECT MATERIAL 12 DIRECT LABOUR 5 VARIABLE MANUFACTURING OVERHEAD 4 FIXED MANUFACTURING OVERHEAD(432000/9000) 48

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