Question

Ace, Inc. has the following cost data for Product X: (Click on the icon to view the data.) Calculate the unit product cost using absorption costing and variable costing when production is 1,000 units, 2,200 units, and 4,400 units. Data Table Select the labels and enter the amounts to compute the unit product cost using absorption costing. (If a box is not used in the table, leave Direct materials 1,000 units 2,200 units 4,400 units Direct labor Direct materials Direct labor 43 per unit 55 per unit 14 per unit 22,000 per year Variable manufacturing overhead Fixed manufacturing overhead Print Done Total unit product cost

Answer 1

55 Under absorption costing: 1,000 units 2,200 units 4,400 units Direct materials Direct labor 55 Variable manufacturing overhead Fixed manufacturing overhead (22,000/No. of units produced) Total unit product cost Under variable costing: 1,000 units 2,200 units 4,400 units Direct materials Direct labor Variable manufacturing overhea 55 55 Total unit product cost 112