Question

Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses $160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year $670,000 per year What is Athabasca Auto manufacturing cost per unit using: a. Variable costing (1 marks)

Answer 1

page:o) per Answer What is Athabasca fruto manufacturing cost unit using: (a) variable costing (6) absoption costing @ Manufaturing cost per unit under variable costing: per unit = direct materials + direit manufatwing labour + voliable manufartuning costs = 160+ 32 +64 cost 256) cost per (6) Manufacturing unit under absoption costing: per wit : dixed materials + direct manufaturing labourr variable manufacturing coste t fixed Cost manufacturing costs 160+ 32 +64 + 1450000/120000 $ 256 + 14.58 $ 270.58 d Note: Manufauturing costa does not include selling administrative expenses.