Steve Rogers recently started a job as an administrative assistant in the cost accounting department of Mickey Manufacturing . New to the area of cost accounting , Steve is puzzled by the fact that one of Mickey ' s manufactured products , R2D2 , seems to have a different cost , depending on who asks for it . When the marketing department requested the cost of R2D2 in order to determine pricing for the new catalog , Steve was told to report one amount , but when a request came in the very next day from the financial reporting department , the cost of R2D2 , she was told the cost was very different . Steve runs a report using Mickey ' s cost accounting system , which produces the following cost elements for one unit of R2D2 . Direct Materials Direct Manufacturing Labor Variable Manufacturing Overhead Allocated Fixed Manufacturing Overhead Research and development costs specific to RCP10 * Marketing Costs * Sales Commissions * Allocated administrative costs of production department Allocated administrative costs of corporate headquarters Customer Service costs * Distribution costs * $ 30 . 00 $ 17 . 00 $ 9 . 00 $ 33 . 00 $ 6 . 00 $ 7 . 00 $ 12 . 00 $ 5 . 00 $ 18 . 00 $ 3 . 00 $ 9 . 00 * these costs are specific to R2D2 but would not be eliminated if R2D2 were purchased from an outside supplier . Required : 1 . Explain to Steve why the costs given to the marketing and financial reporting departments would be different . 2 . Calculate the cost of one unit of RCP10 to determine the following : a . The selling price of RCP10 b . The cost of inventory for financial reporting c . The ability of Mickey ' s production manager to control costs .