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4. Beverage Company reports the following for its first year of operations. The company produced 88,000 units and sold 72,000 units at a price of

image text in transcribedimage text in transcribed 4. Beverage Company reports the following for its first year of operations. The company produced 88,000 units and sold 72,000 units at a price of $280 per unit. Direct materials Direct labor Variable overhead $ 120 per unit $ 44 per unit $ 16 per unit $1,056,000 per year Variable selling and administrative expenses $ 22 per unit $210,000 per year Fixed overhead Fixed selling and administrative expenses Assuming the company uses variable costing, determine its total product cost per unit 5. A company reports the following for its single product. The company produced and sold 20,000 units this year. Compute gross profit under absorption costing. Direct materials $20 per unit Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 24 per unit $6 per unit $80,000 per year $4 per unit $ 130,400 per year $ 120 per unit

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