Question

Check Columbia Products produced and sold 1,300 units of the company's only product in March. You have collected the following information from the accounting records: 128 Sales price (per unit) Manufacturing costs: Fixed overhead (for the month) Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) Marketing and administrative costs: Fixed costs (for the month) Variable costs (per unit) 14,300 9 31 23 20,80 3 Required: a. Compute the following 1 2 3 $ 63 Variable manufacturing cost per unit Full cost per unit Variable cost per unit Full absorption cost per unit Prime cost per unit Conversion cost per unit 4 5 6

Answer 1

Answer:-

1. Variable manufacturing cost per unit = Direct labor + Direct materials + Variable Overhead

Variable manufacturing cost per unit = $9 + $31 + $23 = $63

2. Full cost per unit = All unit fixed cost + All unit variable cost

Full cost per unit = ($14,300/1,300) + ($20,800/1,300) + $9 + $31 + $23 + $3 = $93

3. Variable cost per unit = Direct labor + Direct materials + Variable overhead + Variable marketing and administrative cost

Variable cost per unit = $9 + $31 + $23 + $3 = $66

4. Full absorption cost = Variable manufacturing cost + Fixed manufacturing cost

Full absorption cost = $9 + $31 + $23 + ($14,300 / 1,300)

Full absorption cost = $74

5. Prime cost per unit = Direct labor + Direct materials

Prime cost per unit = $9 + $31 = $40

6. Conversion cost per unit = Direct labor + Manufacturing Overhead

Conversion cost per unit = $9 + ($23 + $11) = $43

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