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:

Public Choice Theory

A framework that applies economic principles to political science, analyzing how public decisions and policies are made.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.

Agricultural Programs

Initiatives and policies designed to support, regulate, and improve the agricultural sector, including subsidies, research, and development.

Freedom To Farm Act

A United States federal law passed in 1996 that aimed at deregulating agriculture, allowing farmers to make planting decisions based on market demands rather than governmental directives.