Q14

The Colin Division of Wildhorse Company sells its product for $38 per unit. Variable costs per unit include: manufacturing. $15; and selling and administrative, $3. Fixed costs are: $300000 manufacturing overhead, and $53000 selling and administrative. There was no beginning inventory. Expected sales for next year are 50000 units. Chris Anderson, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 50000 units or 60000 units next year. What would the manufacturing cost per unit be under absorption costing for each alternative? 50000 units 60000 units O $15.00 $20.00 $18.00 $15.00 $21.00 $18.00 $20.00 O $21.00