Question
Therabody produces the Theragun, which retails for $400 per unit. In 2022, 20,000 units were produced but only 18,500 were sold. Therabodys cost of direct
Therabody produces the Theragun, which retails for $400 per unit. In 2022, 20,000 units were produced but only 18,500 were sold. Therabodys cost of direct materials is $60 per unit. Their direct labor costs are $30 per unit. The cost per unit for variable manufacturing overhead is $32 per unit. Total fixed manufacturing is $480,000. Fixed selling and admin costs are $600,000. Variable selling and admin costs are $22 per unit. 1. Calculate the manufacturing cost per unit under absorption costing and prepare and income statement using absorption costing. Calculate the manufacturing cost per unit under variable costing and prepare and income statement using variable costing.
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