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Skinny Dippers, Inc., produces nonfat frozen yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have
Skinny Dippers, Inc., produces nonfat frozen yogurt which it sells to restaurants and ice cream shops. The product is sold in 10-gallon containers, which have the following price and variable costs Sales price Direct material Direct labor Variable overhead $43 17 10 Budgeted fixed overhead in 20x4, the company's first year of operations, was $390,000. Actual production was 130,000 10-gallon containers, of which 123,500 were sold. Skinny Dippers, Inc. incurred the following selling and administrative expenses Fixed Variable $130,000 for the year $ 1 per container sold Required 1. Compute the per unit product cost per container of frozen yogurt under variable costing and absorption costing Per unit product cost Variable costing Absorption costing
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