Pavelko Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 90,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 10,000 9,000 Units sold during the year 9,000 8,000 Units in ending inventory 1,000 2,000The unit product cost under variable costing in Year 2 is closest to:
Pavelko Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 90,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 10,000 9,000 Units sold during the year 9,000 8,000 Units in ending inventory 1,000 2,000The unit product cost under variable costing in Year 2 is closest to:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Pavelko Corporation has provided the following data for its two most recent years of operation:
The unit product cost under variable costing in Year 2 is closest to:
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 13 |
| Direct labor | $ | 5 |
| Variable manufacturing |
$ | 5 |
| Fixed manufacturing overhead per year | $ | 90,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 6 |
| Fixed selling and administrative expense per year | $ | 61,000 |
| Year 1 | Year 2 | |
| Units in beginning inventory | 0 | 1,000 |
| Units produced during the year | 10,000 | 9,000 |
| Units sold during the year | 9,000 | 8,000 |
| Units in ending inventory | 1,000 | 2,000 |
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