6 Quiz Bitonti Corporation has provided the following data for its most recent y

Question

6 Quiz Bitonti Corporation has provided the following data for its most recent year of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials 6:10 Direct labor Variable manufacturing overhead Pixed manufacturing overhead per year $156,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold$ Fixed selling and administrative expense per year s 81,000 Units in beginning inventory Units produced during the year 12,000 Units sold during the year Units in ending inventory 11,000 1,000 The unit product cost under absorption costing is closest to:

Explanation / Answer

Units produced during the year = 12000

Direct materials = 9 per unit

Direct labor = 7 per unit

Variable manufacturing overhead = 5 per unit

Fixed manufacturing overhead = 156000/12000 = 13 per unit

Variable selling and administrative expenses = 5 per unit

Fixed selling and administrative expenses = 81000/12000 = 6.75 per unit

The unit product cost under absorption costing = 9+7+5+13+5+6.75 = 45.75

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