Question
A manufacturer reports the following costs to produce 27,000 units in its first year of operations: Direct materials, $27 per unit, Direct labor, $23 per
A manufacturer reports the following costs to produce 27,000 units in its first year of operations: Direct materials, $27 per unit, Direct labor, $23 per unit, Variable overhead, $243,000, and Fixed overhead, $378,000. The total product cost per unit under absorption costing is:
Multiple Choice
$50 per unit.
$59 per unit.
$73 per unit.
$64 per unit.
$36 per unit.
The following information is available for a company's utility cost for operating its machines over the last four months.
Month | Machine hours | Utility cost | ||
January | 1,030 | $ | 5,580 | |
February | 1,930 | $ | 7,160 | |
March | 2,660 | $ | 8,100 | |
April | 730 | $ | 3,610 | |
Using the high-low method, the estimated variable cost per unit for utilities is:
Multiple Choice
$3.05.
$4.95.
$2.33.
$3.85.
$6.57.
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