Lily's Pastries Produces Cupcakes,which Sell for $5 Each

question 137

Multiple Choice

Lily's Pastries produces cupcakes,which sell for $5 each.During the current month,Lily produced 2,800 cupcakes,but only sold 2,700 cupcakes.The variable cost per cupcake was $3 and the sales commission per cupcake was $0.50.Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200.What is the product cost per cupcake under absorption costing?

• A)$3.50
• B)$5.50
• C)$5.00
• D)$3.00

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Definitions:

Virtual Teams

Groups of individuals who work together across time, space, and organizational boundaries, connected by electronic communication technologies.

Shared Purpose

A common goal or vision that unites a group or organization, motivating its members towards collective action.

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Online gatherings facilitated through internet-based platforms, allowing participants to communicate and collaborate from different locations.

Travel Costs

Expenses associated with traveling for business or personal reasons, including transportation, lodging, and meals.