Burns company incurred the following costs during the year:
direct materials $24.50 per unit; direct labor $15.60 per unit; variable manufacturing overhead $18.10 per unit; variable selling and administrative costs $8.90 per unit; fixed manufacturing overhead $132,000; and fixed selling and administrative costs $11,000.
burns produced 6,600 units and sold 6000 units. determine the manufacturing cost per unit
(a) absorption costing.
(b) variable costing. (round answers to 2 decimal places, e. g. 52.75.)

Instrucitons are listed below.

Explanation:

Giving the following information:

Direct materials $24.50 per unit; direct labor $15.60 per unit; variable manufacturing overhead $18.10 per unit; variable selling and administrative costs $8.90 per unit; fixed manufacturing overhead $132,000; and fixed selling and administrative costs $11,000.

Burns produced 6,600 units and sold 6000 units.

1) Absorption costing= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 24.5 + 15.6 + 18.1 + (132,000/6,600)= 78.2

2) Variable costing= direct material + direct labor + variable overhead + variable selling and administrative costs

Unitary costs= 24.5 + 15.6 + 18.1 + 8.9= 67.1

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explanation:

the answer is d

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