The accounting records for Eisenhower Manufacturing Company disclosed the following cost information for the current year: Direct
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Question:
The accounting records for Eisenhower Manufacturing Company disclosed the following cost information for the current year:
Direct materials$30,000
Direct labor$40,000
Fixed manufacturing overhead$50,000
Variable manufacturing overhead$10,000
Assume the company produced 10,000 of inventory, sold 6,000 of these units in the current year. and that there was no beginning inventory.The cost per unit under variable and absorption costing would be, respectively:
A. $2.50 and $5.50
B. $7.00 and $5.00
C. $8.00 and $13.00
D. $9.50 and $15.00
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