Jerry produces a specialty statue item. The following information has been provi

Question

Jerry produces a specialty statue item. The following information has been provided by management: Actual sales 10,000 units Budgeted production 12,000 units Selling price $425 per unit Direct material costs $87.50 per unit Fixed manufacturing costs $62.50 per unit Variable manufacturing costs $50.00 per unit Variable administrative costs $25.00 per unit Required: a. What is the cost per statue if absorption costing is used? b. What is the cost per statue if "super-variable costing" is used? c. What is the total throughput contribution?

Explanation / Answer

Actual Budgeted Sales units 10000 12000 selling price 425 425 Direct material 87.5 Fixed manufacturing costs 62.5 Variable manufacturing costs 50 Variable administrative costs 25 a) Absorption costing Direct material 87.5 Variable manufacturing costs 50 Fixed manufacturing costs 62.5 cost per unit 200 b) Variable costing Direct material 87.5 Variable manufacturing costs 50 Variable administrative costs 25 cost per unit 162.5 c) throughput contribution Selling price per unit 425 less Direct material 87.5 throughput contribution per unit 337.5

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.