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30 November, 15:48

Swifty Company incurred the following costs during the year: direct materials $24.40 per unit; direct labor $13.10 per unit; variable manufacturing overhead $16.00 per unit; variable selling and administrative costs $11.00 per unit; fixed manufacturing overhead $132,000; and fixed selling and administrative costs $12,000. Swifty produced 6,600 units and sold 6000 units. Determine the manufacturing cost per unit under

(a) absorption costing and

(b) variable costing. (Round answers to 2 decimal places, e. g. 52.75.)

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  1. 30 November, 15:53
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Swifty Company incurred the following costs during the year: Direct materials $24.40 per unit

    Direct labor $13.10 per unit

    Variable manufacturing overhead $16.00 per unit

    Variable selling and administrative costs $11.00 per unit

    Fixed manufacturing overhead $132,000

    Fixed selling and administrative costs $12,000.

    Swifty produced 6,600 units and sold 6000 units.

    A) Absorption costing = direct material + direct labor + variable overhead + fixed overhead

    Absorption costing = 24.4 + 13.1 + 16 + (132,000/6,600) = $73.5

    B) Variable costing = direct material + direct labor + variable overhead + Variable selling and administrative costs

    Variable costing = 24.4 + 13.1 + 16 + 11 = $64.5
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