AAA Manufacturing Inc, Makes a Product with the Following Costs

question 47

Multiple Choice

AAA Manufacturing Inc, makes a product with the following costs per unit:
Direct materials $180
Direct labor $20
Manufacturing overhead (variable) $30
Manufacturing overhead (fixed) $130
Marketing costs $75
What would be the inventoriable cost per unit under variable costing and what would it be under absorption costing?

• A) $180 for variable costing and $305 under absorption costing
• B) $230 for variable costing and $305 under absorption costing
• C) $230 for variable costing and $360 under absorption costing
• D) $200 for variable costing and $305 under absorption costing

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