Question
Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: Number of units produced 10,600 Variable
Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: Number of units produced 10,600 Variable costs per unit: Direct materials $ 90 Direct labor $ 72 Variable manufacturing overhead $ 7 Variable selling and administrative expenses $ 14 Fixed costs: Fixed manufacturing overhead $ 636,000 Fixed selling and administrative expenses $ 190,800 The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit product cost under variable costing.
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