Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials,...
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $75; direct labor, $125; variable manufacturing overhead, $60; total fixed manufacturing overhead, $600,000. What is the cost per unit under both the variable and absorption methods?
Variable
Method Cost per unit$$
Absorption
MethodCost per unit$$
Homework Answers
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Variable method Cost per unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead = 75 + 125 + 60 = 260 |
|
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Absorption method Cost per unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed manufacturing overhead = 75 + 125 + 60 + (600,000/20,000) = 290 |
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Cool Pool has these costs associated with production of 20,000
units of accessory products: direct materials,...
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