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2 Local manufacturer produces a handcrafted musical instrument called dombyra. The dombyras are sold for $850. Selected data for the company's operations last year follow:
2
Local manufacturer produces a handcrafted musical instrument called dombyra. The dombyras are sold for $850. Selected data for the company's operations last year follow:
Units in beginning inventory 0
Units produced 250
Units sold 225
Units in ending inventory 25
Variable costs per unit:
Fixed costs:
Assume that the company uses variable costing. Compute the unit product cost for one dombyra. Show your workings.
Units in beginning inventory 0
Units produced 250
Units sold 225
Units in ending inventory 25
Variable costs per unit:
- Direct materials $100
- Direct labor $320
- Variable manufacturing overhead $40
- Variable selling and administrative $20
Fixed costs:
- Fixed manufacturing overhead $60,000
- Fixed selling and administrative $20,000
Assume that the company uses variable costing. Compute the unit product cost for one dombyra. Show your workings.
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