Santa Ana Corporation has computed the following unit costs for the year just en

Question

Santa Ana Corporation has computed the following unit costs for the year just ended: Direct material used Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative cost Fixed selling and administrative cost S45 24 35 40 17 32 Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing? Variable Costin tion Costin A. B. C. S69 S69 S104 S104 S144 S161 S161 S144 E. Some other combination of figures not listed above.

Explanation / Answer

Variable costing Absorption costing Direct materials 45 45 Direct labor 24 24 Variable manufacturing overhead 35 35 Fixed manufacturing overhead 40 Per unit inventory cost 104 144 Option D is correct

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