The following cost behavior patterns describe anticipated manufacturing costs for 2019: raw material, $7.90/unit; direct labor, $10.90/unit; and manufacturing overhead, $347,100 $8.90/unit. Required: If anticipated production for 2019 is 39,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)

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aquialaska aquialaska · Answer 1 · 2020-04-09T03:47:20+02:00

Answer:

Variable unit cost = $27.70

Absorption cost = $36.60

Explanation:

The calculation of unit cost using variable costing and absorption costing is shown below:-

Variable costing Absorption costing

Raw material per unit $7.90 $7.90

Direct labor per unit $10.90 $10.90

Variable manufacturing

overhead per unit $8.90 $8.90

Fixed manufacturing

overhead per unit $8.9

($347,100 ÷ 39,000)

Unit cost $27.70 $36.60

Therefore the variable unit cost is $27.70 and absorption cost is $36.6 by using the above computation.

tallinn tallinn · Answer 2 · 2022-04-05T15:09:23+02:00

When the unit cost uses variable costing and also absorption costing.

The Variable unit cost is = $27.70

Then the Absorption cost is = $36.60

The calculation of unit cost using variable costing and also absorption costing is shown below:-

Variable costing Absorption costing

Raw material per unit $7.90 $7.90Direct labor per unit $10.90 $10.90

Variable manufacturing

overhead per unit $8.90 $8.90

Fixed manufacturing

overhead per unit $8.9

($347,100 ÷ 39,000)

Unit cost $27.70 $36.60

Therefore, When the variable unit cost is $27.70 and also absorption cost is $36.6 by using the above computation.

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