Question
Pharoah makes Halloween costumes. The company incurred the following total costs to produce 32,400 costumes. Direct materials $232,000 Direct labor 174,000 Variable overhead 15,200 Fixed
Pharoah makes Halloween costumes. The company incurred the following total costs to produce 32,400 costumes. Direct materials $232,000 Direct labor 174,000 Variable overhead 15,200 Fixed overhead 103,680 (a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 18,600 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.)
Average unit
product cost $enter a dollar amount rounded to 2 decimal places Product cost $enter a dollar amount rounded to 0 decimal places
(b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 18,600 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.)
Average unit product cost $enter a dollar amount rounded to 2 decimal places
Product cost $enter a dollar amount rounded to 0 decimal places
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