Blackbird, Incorporated Reports the Following Information Regarding Its Production Cost

question 148

Essay

Blackbird, Incorporated reports the following information regarding its production cost:
$\begin{array}{ll}\text { Units produced } & 39,000 \text { units } \\\text { Direct labor } & \$ 13 \text { per unit } \\\text { Direct materials } & \$ 17 \text { per unit } \\\text { Variable overhead } & \$ 7,800,000 \text { in total } \\\text { Fixed overhead } & \$ 9,750 ,000 \text { in total }\end{array}$ a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.

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Definitions:

Insider Trading

Conducting illicit trades on the stock exchange for individual advantage by using confidential data.

Tipping

The practice of giving extra money to service workers, over the basic price of the service, as a gesture of appreciation for their work.

Criminal Extortion

involves obtaining something, especially money, through force or threats, and is considered a criminal act.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 that aims to protect investors by making corporate disclosures more reliable and accurate.