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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $832. Selected data for
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $832. Selected data for the companys operations last year follow:
Units in beginning inventory | 0 |
---|---|
Units produced | 21,000 |
Units sold | 17,000 |
Units in ending inventory | 4,000 |
Variable costs per unit: | |
Direct materials | $ 230 |
Direct labor | $ 400 |
Variable manufacturing overhead | $ 52 |
Variable selling and administrative | $ 22 |
Fixed costs: | |
Fixed manufacturing overhead | $ 630,000 |
Fixed selling and administrative | $ 460,000 |
Required:
- Assume the company uses absorption costing. Compute the unit product cost for one gamelan.
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
- Assume the company uses variable costing. Compute the unit product cost for one gamelan.
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