Help Required information (The following information applies to the questions di
ID: 2556080 • Letter: H
Question
Help Required information (The following information applies to the questions displayed below.] Cool Sky reports the following costing data on its product for its first year of operations. During this first year the company produced 44,000 units and sold 36,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Pixed overhead for the year 54 20 $484,000 $12 Selling and administrative costa Variable selling and administrative cost per unit Fixed selling and administrative cost per year $115,000 1a. Assume the company uses absorption costing. Determine its product cost per unit. K Prev6 7 89f 10NextExplanation / Answer
Cost per unit using absorption costing
Direct material per unit
54
Direct labour per unit
20
Variable overhead
6
Fixed overhead ($484000 / 44,000 units)
11
Total product cost per unit
91/Unit
Cost per unit using absorption costing
Direct material per unit
54
Direct labour per unit
20
Variable overhead
6
Fixed overhead ($484000 / 44,000 units)
11
Total product cost per unit
91/Unit
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