Answer the following question using the information below: Jason Novelty Company produces a specialty item. Management...
Answer the following question using the information below:
Jason Novelty Company produces a specialty item. Management has provided the following information:
|
Actual sales |
160,000 |
units |
|
Budgeted production |
100,000 |
units |
|
Selling price |
$43 |
per unit |
|
Direct material costs |
$9 |
per unit |
|
Variable manufacturing overhead |
$4 |
per unit |
|
Variable administrative costs |
$6 |
per unit |
|
Fixed manufacturing overhead |
$6 |
per unit |
What is the cost per unit if throughput costing is used?
Homework Answers
Cost per unit = $9
When throughput costing is used, only the cost of direct materials is factored. So the cost per unit here is $9
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