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Lily's Pastries produces cupcakes, which sell for $5.00 each. During the current month, Lily produced2900 cupcakes,...

Lily's Pastries produces cupcakes, which sell for $5.00 each. During the current month, Lily produced2900 cupcakes, but only sold 2200 cupcakes. The variable cost per cupcake was $3.10 and the sales commission per cupcake was $0.70. Total fixed manufacturing costs were $1900 and total fixed marketing and administrative costs were $1100. What is the product cost per cupcake under absorption costing?

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When calculating product cost only manufacturing costs are considered. under absorption cost variable and fixed manufacturing cost are considered. Under variable costing only variable manufacturing cost are considered. Cost related to selling,administration and marketing are not taken into consideration while calculating product cost.here sales commission and fixed administrative cost will not be considered. Calculation is as under:

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