Q28

The Colin Division of Sandhill Company sells its product for $31 per unit. Variable costs per unit include: manufacturing. $13; and selling and administrative, $2. Fixed costs are: $420000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 60000 units. Anthony Walker, 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 60000 units or 70000 units next year. What would the manufacturing cost per unit be under absorption costing for each alternative? 60000 units 70000 units O $15.00 $13.00 O $20.00 $19.00 $15.00 $13.00 $19.00 $20.00