Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $150 per unit.           Manufacturing costs       Direct materials per unit $ 66   Direct labor per unit $ 25   Variable overhead per unit $ 9   Fixed overhead for the year $ 572,000   Selling and administrative costs       Variable selling and administrative cost per unit $ 12   Fixed selling and administrative cost per year $ 110,000       2a. Assume the company uses variable costing. Determine its product cost per unit.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $150 per unit.
  

       
Manufacturing costs      
Direct materials per unit $ 66  
Direct labor per unit $ 25  
Variable overhead per unit $ 9  
Fixed overhead for the year $ 572,000  
Selling and administrative costs      
Variable selling and administrative cost per unit $ 12  
Fixed selling and administrative cost per year $ 110,000  
 

 

2a. Assume the company uses variable costing. Determine its product cost per unit.
 

 

 

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