managerial accounting

Breadfruit, Inc. began business last year making decorated platters. The unit costs on a normal costing basis are shown below. 3.00 18.00 Manufacturing Costs Per Unit: Direct materials (1.5 lbs. at $2 per lb.) Direct labor (2 hrs. at $9 per hr.) Variable manufacturing overhead (2 hrs. at $2.50 per hr.) Fixed manufacturing overhead (2 hrs. at $3.25 per hr.) Nonmanufacturing Costs: Variable (15% of sales) Fixed 5.00 6.50 230,000 During the year, the company had the following activity. Units produced Units sold Selling price per unit Direct labor hours worked 30,000 27,400 50 60,000 The actual fixed manufacturing overhead was $10,000 greater than the budgeted fixed manufacturing overhead. Any over- or underapplied manufacturing overhead is closed to cost of goods sold at the end of the year. REQUIRED: (1) Compute the unit manufacturing cost that the company should use to value its inventory of finished goods using the following costing methods. (a) Variable costing. (b) Absorption costing. Prepare an income statement for the company using full absorption costing, Show all appropriate calculations. Prepare an income statement for the company using variable costing. Show all appropriate calculations. (3)