The Crider Company experienced the following costs in 2007: Direct material $2.6

Question

The Crider Company experienced the following costs in 2007: Direct material $2.65/unit Direct labor $1.80/unit Manufacturing Overhead Costs Variable $3.25/unit Fixed $1.15/unit Selling & Administrative Cost Variable selling $94,000 Fixed selling $35,000 Fixed administrative $10,000 During the year the company manufactured 47,000 units and sold 40,000 units. The average unit product cost using full costing would be: During the year the company manufactured 47,000 units and sold 40,000 units. The average unit product cost using full costing would be:

A $ 7.70
B $ 9.70
C $ 8.85
D $ 10.85

Explanation / Answer

Direct material $2.65/unit

Direct labor $1.80/unit

Manufacturing Overhead Costs Variable $3.25/unit

Fixed $1.15/unit

The average unit product cost using full costing would be=$7.70

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