Question 24

1. Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation:
3. Number of units produced
4. 2,000
5. Variable costs per unit:
7. Direct materials
8. $21
9. Direct labor
10. $75
11. Variablemanufacturing overhead
12. $7
13. Variableselling and administrative expenses
14. $6
15. Fixed costs:
17. Fixed manufacturing overhead
18. $116,000
19. Fixed selling and administrative expenses
20. $40,000
23. The company had no beginning or ending inventories.
25. Required:
27. a. Compute the unit product cost under absorption costing.
28. b. Compute the unit product cost under variable costing.