Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $811. Selected data for the company’s operations last year follow: Units in beginning inventory 0Units produced 11,000Units sold 8,000Units in ending inventory 3,000Variable costs per unit: Direct materials $ 130Direct labor $ 460Variable manufacturing overhead $ 56Variable selling and administrative $ 22Fixed costs: Fixed manufacturing overhead $ 610,000Fixed selling and administrative $ 760,000Required:Assume the company uses absorption costing. Compute the unit product cost for one gamelan.Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Assume the company uses variable costing. Compute the unit product cost for one gamelan.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $811. Selected data for the company’s operations last year follow:
Units in beginning inventory 0
Units produced 11,000
Units sold 8,000
Units in ending inventory 3,000
Variable costs per unit:
Direct materials $ 130
Direct labor $ 460
Variable manufacturing overhead $ 56
Variable selling and administrative $ 22
Fixed costs:
Fixed manufacturing overhead $ 610,000
Fixed selling and administrative $ 760,000
Required:
Assume the company uses absorption costing. Compute the unit product cost for one gamelan.
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Assume the company uses variable costing. Compute the unit product cost for one gamelan.
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