Connect -> O ? |? https://newconnect.mheducation.com/flow/connect.html EXAM 3 (C

Question

Connect -> O ? |? https://newconnect.mheducation.com/flow/connect.html EXAM 3 (CH S &6) 15 Plummer Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: S 44 0218.34 Variable nanufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold5 Fixed selling and administrative expense per year 566,988 Year Year 2 Units in beginning inventory Units produced Units sold Units in ending inventory 2,030 9,0007,000 7,000 8,080 2,000 1,0080 The unit product cost under absorption costing in Year 2 is closest to Mutiple Choice 533.00 $9 00 $2800

Explanation / Answer

Answr:

Unit production cost under absorption costing for year 2 =$28

Working notes for the above answer is as under

Year2

Direct materil

9

Direct Labor

6

Variable manufacturing Over head

4

Fixed Manu. OH

9

(63000/7000)

28

Year2

Direct materil

9

Direct Labor

6

Variable manufacturing Over head

4

Fixed Manu. OH

9

(63000/7000)

28

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