Neef Corporation has provided the following data for its two most recent years o

Question

Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced 12,000 9,000 Units sold 9,000 10,000 Units in ending inventory 3,000 2,0000 The unit product cost under absorption costing in Year 2 is closest to: Multiple Choice $69.00 $21.00 $74.00 $48.00

Explanation / Answer

Answer is $69

Particulars Amt Direct Material 12 Direct Labor 5 Variable Manufacturing Overhead 4 Fixed Manufacturing Overhead (432000/9000) 48 Unit Cost         69.00

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