Crystal Pools,Inc What Is the Unit Product Cost Using Absorption Costing?
A)

question 164

Multiple Choice

Crystal Pools,Inc.has provided the following information for the year. $$\begin{array} { | l | r |l| } \hline \text { Units produced } & 13,000 &\text { units } \\\hline \text { Sales price } & \$ 200& \text { per unit } \\\hline \text { Direct materials } & \$ 50 &\text { per unit } \\\hline \text { Direct labor } & \$ 45& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 65 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 440,000&\text { per year } \\\hline \text { Variable selling and administration costs } & \$ 60 &\text { per unit } \\\hline \text { Fixed selling and administration costs } & \$ 250,000& \text { per year } \\\hline\end{array}$$ What is the unit product cost using absorption costing?

• A) $95
• B) $194
• C) $155
• D) $160

---

Definitions:

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at different points in time side-by-side for comparison purposes.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.

Comparative Balance Sheet

A comparative balance sheet presents financial positions of a business at different periods side by side to help in analyzing trends over time.