The following questions are based on Laramie Leather Corporation, which produces belts that sell for 15perunit.Ofthe100,000unitsproduced,80,000weresoldduringtheyear.Allendinginventorywasinfinishedgoodsinventory.Thefirmhadnoinventoryatthebeginningoftheyear.Directmaterial(unitlevelcost)................5. 15

Question:

The following questions are based on Laramie Leather Corporation, which produces belts that sell for $15 p e r u n i t . O f t h e 100, 000 u n i t s p r o d u c e d, 80, 000 w e r e s o l d d u r i n g t h e y e a r . A l l e n d i n g i n v e n t o r y w a s i n f i n i s h e d - g o o d s i n v e n t o r y . T h e f i r m h a d n o i n v e n t o r y a t t h e b e g i n n i n g o f t h e y e a r . D i r e c t m a t e r i a l (u n i t - l e v e l c o s t) . . . . . . . . . . . . . . . . - 5.$ 240,000 Direct labor (unit-level cost)...............0.005. 160,000 Factory overhead (unit-level cost) .............05. 80,000 Factory overhead (capacity cost) ................ 240,000 Selling and administrative (unit-level cost).......... 80,000 Selling and administrative (capacity cost).......... 128,000 Required