Blackbird, Incorporated Reports the Following Information Regarding Its Production Cost

question 76

Essay

Blackbird, Incorporated reports the following information regarding its production cost. $$\begin{array} { l l } \text { Units produced } & 39,000 \text { units } \\\text { Direct labor } & \$ 13 \text { per unit } \\\text { Direct materials } & \$ 17 \text { per unit } \\\text { Variable overhead } & \$ 7,800,000 \text { in total } \\\text { Fixed overhead } & \$ 9,750,000 \text { in total }\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.

---

Definitions:

Financial Reporting

The process of providing financial information to company stakeholders to make informed decisions, including balance sheets and income statements.

Software Production Costs

Expenses associated with the development, design, and production of software products, which may be capitalized or expensed depending on their nature and the accounting policies adopted.

GAAP

Commonly adhered to accounting norms and standards for financial reporting, known as Generally Accepted Accounting Principles.

Research and Development

Activities undertaken by companies to innovate and introduce new products or services; this includes basic research, applied research, and development of new technologies.