Current Attempt in Progress Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $25, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is $37. $52. $38. $50.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 14E: Accepting business at a special price Box Elder Power Company expects to operate at 85% of...
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Current Attempt in Progress
Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and
sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $25,
direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead,
and $90000 selling and administrative expenses. The per unit manufacturing cost under
absorption costing is
$37.
$52.
$38.
$50.
Transcribed Image Text:Current Attempt in Progress Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $25, direct labor $12, and variable overhead $1. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is $37. $52. $38. $50.
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