Burns Manufacturing- Absorption versus Variable Costing
Burns Manufacturing incurred the following costs during the year: direct materials $20 per unit; direct labor $12 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per unit; fixed manufacturing overhead
$120,000; and fixed selling and administrative costs $10,000. Burns produced 12,000 units and sold 10,000 units.
(a) Determine the manufacturing cost per unit under absorption costing.
(b) Determine the manufacturing cost per unit under variable costing.
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Solution Preview
Burns Manufacturing incurred the following costs during the year: direct materials $20 per unit; direct labor $12 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per ...
Solution Summary
This solution is comprised of a detailed explanation to determine the manufacturing cost per unit under absorption costing.