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    Burns Manufacturing- Absorption versus Variable Costing

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    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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    https://brainmass.com/business/accounting/burns-manufacturing-absorption-versus-variable-costing-267145

    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.

    $2.49

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