Question
Variable costs per unit: Direct materials -$14, Direct labour -$20, Variable manufacturing overhead -$10, selling and administrative -$ 6 Fixed cost per month Fixed manufacturing
Variable costs per unit: Direct materials -$14, Direct labour -$20, Variable manufacturing overhead -$10, selling and administrative -$ 6
Fixed cost per month
Fixed manufacturing overhead -$315,00.00
Fixed selling and administrative overheads - $245,000.00
The product sells for $120 per unit. Production and sales data for July, August, and September, the first three months of operations, are shown below:
Units Produced Units Sold
July 18,000 14,500
August 16,000 15,700
September 20,000 21,600
Determine the unit product cost using i. Marginal costing [2 marks] ii. Absorption costing [3 marks]
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