Barkley Company had the followign cost data for Product X. Direct Materials $45 per unit Direct Labor 50 per unit Variable manufacturing overhead 10 per unit Fixed manufacturing overhead 30,000 per year Calculate the unit product cost using absorption costing and variable costing when production is 3,000 units.

Question

Business

Monique Brandt

17 July, 20:30

Barkley Company had the followign cost data for Product X. Direct Materials $45 per unit Direct Labor 50 per unit Variable manufacturing overhead 10 per unit Fixed manufacturing overhead 30,000 per year Calculate the unit product cost using absorption costing and variable costing when production is 3,000 units.

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Answers (1)

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Aden Morales · Answer 1

Variable costing unit cost 105

Absorption costing units cost 115

Explanation:

variable cost:

DM 45

DL 50

VMO 10

Total variable 105

Variable cost x 3,000 = 105 x 3,000 = 315,000

Absorption cost

variable + fixed = 315,000 + 30,000 = 345,000 / 3