Accounting Question

Assignment Question(s):

Q1: Unite Corporation produces a single product and has the following cost structure:


Number of units produced each year.		7,000
Variable costs per unit:
Direct materials	$	51
Direct labor	$	12
Variable manufacturing overhead	$	2
Variable selling and administrative expense	$	5
Fixed costs per year:
Fixed manufacturing overhead	$	441,000
Fixed selling and administrative expense	$	112,000

Required: Compute unit product cost under absorption costing:

Answer:

Q2: A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units produced		6,000
Units sold		5,600

Variable costs per unit:
Direct materials	$	38
Direct labor	$	53
Variable manufacturing overhead	$	3
Variable selling and administrative expense	$	11
Fixed costs:
Fixed manufacturing overhead	$	60,000
Fixed selling and administrative expense	$	28,000

Required: Compute the total period cost for the month under variable costing

Answer:

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