The Staub Company manufactures and sells bus token boxes to a number of bus-manufacturing companies.

The Staub Company has used absorption costing for both financial and managerial purposes in the past, but now wants to use direct (variable) costing internally. No variances to compute.

The following data are available for the month of October:

Beginning inventory	$ 0
Units planned for and produced	5,000
Units sold	4,500
Sales price per unit	$ 300
Selling and Administrative costs (all fixed)	$50,000
Costs of production: Direct materials cost per unit Direct labour costs per unit Variable manufacturing overhead per unit Fixed manufacturing overhead (total)	$50 $60 $30 $50,000 / month

Flag question: Question 14

Question 141 pts

Compute the manufacturing cost of a unit of product under absorption costing (ie. what would be the manufacturing cost per unit in ending inventory under absorption costing)?

Group of answer choices

$110

$140

$150

$160

$175

Flag question: Question 15

Question 151 pts

Compute the manufacturing cost of a unit of product under direct (variable) costing.

Group of answer choices

$110

$140

$150

$160

$175

Flag question: Question 16

Question 161 pts

What is the net income for the month under absorption costing?

Group of answer choices

$600,000

$612,000

$620,000

$625,000

$662,000

Flag question: Question 17

Question 171 pts

What is the net income for the month under direct (variable) costing?

Group of answer choices

$600,000

$612,000

$620,000

$625,000

$662,000