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Home Base, Inc (A) Compute Production Cost Per Unit Under Variable Costing

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Essay

Home Base, Inc. reports the following production cost information.  Units produced 97,000 units  Units sold 92,000 units  Direct labor $17 per unit  Direct materials $34 per unit  Variable overhead $2,522,000 in total  Fixed overhead $1,940,000 in total \begin{array} { l l } \text { Units produced } & 97,000 \text { units } \\\text { Units sold } & 92,000 \text { units } \\\text { Direct labor } & \$ 17 \text { per unit } \\\text { Direct materials } & \$ 34 \text { per unit } \\\text { Variable overhead } & \$ 2,522,000 \text { in total } \\\text { Fixed overhead } & \$ 1,940,000 \text { in total }\end{array}
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.
(c.) Determine the cost of ending inventory using variable costing.
(d.) Determine the cost of ending inventory using absorption costing.

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