The accounting records for Eisner Manufacturing Company included the following c

Question

The accounting records for Eisner Manufacturing Company included the following cost information relating to its first year of operations: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead $ 60,000 $ 80,000 100,000 $ 20,000 Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $192,000. The cost per unit under variable and absorption costing would be, respectively: A. $5.00 and $11.00 B. $16.00 and $26.00. C. $16.00 and $32.67. D. $26.67 and $43.33

Explanation / Answer

unit cost Absorption Variable Direct materials 6 6 Direct labor 8 8 Variable manufacturing oh 2 2 FMOH   (100,000/10000) 10 unit product cost 26 16 answer ) option B

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