1. The following price and operating cost information applies to Trail Bikers Motorcycle Company:

Price $10,000 per motorcycle

Variable production costs

Raw materials $2,000 per motorcycle

Fixed production costs $40,000 per month

Variable selling and administrative costs $250 per motorcycle sold

Fixed selling and administrative costs $45,000 per month

Average production is 10 motorcycles per month. During the most recent month, the company produced 18 motorcycles and sold 15 motorcycles.

What is the unit cost of production per motorcycle if the company is using absorption costing?

a. $2,000 per motorcycle

b. $3,000 per motorcycle

c. $5,500 per motorcycle

d. None of the above.

2. what is the unit cost of production per motorcycle if the company is using variable costing?

a. $2,000 per motorcycle

b. $3,000 per motorcycle

c. $5,500 per motorcycle

d. None of the above.

3. what is the unit cost of production per motorcycle if the company is using throughput costing?

a. $2,000 per motorcycle

b. $3,000 per motorcycle

c. $5,500 per motorcycle

d. None of the above.