Danby,IncHas the Following Cost Data Calculate the Unit Product Cost Using Absorption Costing When Production

question 95

Essay

Danby,Inc.has the following cost data:
$\begin{array}{|l|r|r|}\hline \text { Direct materials } & \$ 38 &\text { per unit } \\\hline \text { Direct labor } & 52& \text { per unit } \\\hline \text { Variable manufacturing overhead } & 15& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & 10,000& \text { per year } \\\hline\end{array}$ Calculate the unit product cost using absorption costing when production is 200 units,400 units,and 800 units.

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Definitions:

Doctrine of Substantial Performance

A legal principle that allows a contracting party to enforce the contract even if there are minor breaches, provided substantial performance of the contract has been achieved.

Perfect Tender Rule

A principle in the Uniform Commercial Code allowing a buyer to demand a full compliance with the contract terms for goods.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to standardize and simplify the laws across the states.

Valid Title

A legal term indicating that a title to a piece of property is legally effective, with the holder having rightful ownership and no claims or outstanding liens against the property.