2 9. Romtech Company sold 43,000 units of its product at a price of $300 per unit. Toi cost per unit is $175, consisting of $168 in variable production cost an administrative cost. Compute the manufacturing margin for the co A. $5,375,000 B. $7,525,000 C. $5,676,000 D. $12,900,000 E. $12,599,000 d $7 i n variable selling and mpany under variable costing. 10. Which of the following statements is true regarding variable costing? A. It is a traditional costing approach B. It is not permitted to be used for managerial reporting C. It makes it easier to manipulate earnings with changes in production levels. D. It treats overhead in the same manner as absorption costing E. Only manufacturing costs that change in total with changes in production level are included in product costs. 11. Under absorption costing, a company had the following unit costs when 8,000 units were produced. Direct labor Direct material Variable overhead Fixed overhead ($60,000/8,000 units) $8.50 per unit $9.00 per unit $6.75 per unit $7.50 per unit $31.75 per unit Total production cost Compute the total production cost per unit under absorption costing if 30,000 units had been produced A. B. C. D. $31.75 $26.25 $27.25 $24.25 $17.50 12. A company reports the following information for its first year of operations: Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead ? units 1,500 units $9 per unit $5 per unit $7 per unit $24,000 in total If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced? A. 2,000 units. B. 3,600 units C. 1,846 units. D. 2,667 units. E. 4,000 units