Burns Manufacturing incurred the following costs during the year: direct materia

Question

Burns Manufacturing incurred the following costs during the year: direct materials, $23 per unit; direct labour, $14 per unit; variable manufacturing overhead, $15 per unit; variable selling and administrative costs, $5 per unit; fixed manufacturing overhead, $110,600; and fixed selling and administrative costs, $10,700. Burns produced 7,900 units and sold 5,900 units. Determine the manufacturing cost per unit under absorption costing Manufacturing cost per unit Determine the manufacturing cost per unit under variable costing Manufacturing cost s per unit Determine the manufacturing cost per unit under throughput costing. Manufacturing cost per unit

Explanation / Answer

1 Manufacturing cost = 23+14+15+(110600/7900)= $66 2 Manufacturing cost = 23+14+15= $52 3 Manufacturing cost = $23

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