Amarantha Corp Calculate the Unit Product Cost Using Absorption Costing and Variable

question 65

Essay

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

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