The accounting records for Eisner Manufacturing Company included the following cost information relating to its first year of operations: Direct materials $ 52,000 Direct labor $ 80,000 Fixed manufacturing overhead $ 91,000 Variable manufacturing overhead $ 25,000 Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $184,000. The cost per unit under variable and absorption costing would be, respectively: Multiple Choice $18.70 and $28.80. $13.70 and $8.80. $4.70 and $9.80. $15.70 and $24.80.

Question

Sonny Watkins

Business

25 July, 16:29

The accounting records for Eisner Manufacturing Company included the following cost information relating to its first year of operations: Direct materials $ 52,000 Direct labor $ 80,000 Fixed manufacturing overhead $ 91,000 Variable manufacturing overhead $ 25,000 Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $184,000. The cost per unit under variable and absorption costing would be, respectively: Multiple Choice $18.70 and $28.80. $13.70 and $8.80. $4.70 and $9.80. $15.70 and $24.80.

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Answers (1)

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Uriah Boyer · Answer 1

Option (d) : $24.8 and $15.7

Explanation:

As per the data given in the question,

Number of units produced = 10,000

Number of units sold = 6,000

Cost per unit = Amount / 10,000

Absorption Variable

Direct material $5.2 $5.2

Direct Labor $8 $8

Variable manufacturing overhead $2.5 $2.5

Fixed manufacturing overhead $9.1 $9.1

Unit product cost $24.8 $15.7