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.)

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