Zot-Ice Corp Calculate the Unit Product Cost Using Absorption Costing and Variable

question 107

Essay

Zot-Ice Corp.has provided the following data for the current year.
$$\begin{array} { | l | r | r|} \hline \text { Units produced } & 2,500 &\text { units } \\\hline \text { Sales price } & \$ 200& \text { per unit } \\\hline \text { Direct materials } & \$ 75 &\text { per unit } \\\hline \text { Direct labor } & \$ 65& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 25& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 225,000 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 30& \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 150,000 &\text { per year } \\\hline\end{array}$$ Calculate the unit product cost using absorption costing and variable costing.

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Definitions:

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from about 380 to 740 nanometers.

Wave

A disturbance that transfers energy from one place to another without transferring matter.

Particle

A small localized object which can be ascribed several physical properties such as volume or mass.

Iris

The iris is the colored part of the eye that controls the diameter and size of the pupil, thus regulating the amount of light that enters the eye.