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ashton, inc.has the following cost data for product x: direct materials $43 per unit direct labor...

ashton, inc.has the following cost data for product x: direct materials $43 per unit direct labor 58 per unit variable manufacturing overhead 11 fixed manufacturing overhead 15,000 per year. calculate the unit product cost using absorption costing and variable costing when production is 500 units , 1000 units, and 1500 units. select the labels and enter the amounts to compute the unit product cost using absorption costing (if a box is not used in the table, leave the box empty. do not select alabel or enter a zero.)

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Expert Solution

Answer:-a)-Unit product cost on 500 units=

Under Absorption costing:-Direct materials + Direct Labor+ Variable manufacturing overhead + fixed manufacturing overhead

=$43+ $58+$11+$30= $142 per unit

Explanation:- Unit fixed manufacturing overhead= fixed manufacturing overhead/No. of units produced

=$15000/500 units =$ 30 per unit

Unit product cost under Variable costing:-Direct materials + Direct Labor+ Variable manufacturing overhead

=$43+$58+$11=$112 per unit

b)- Answer:-Unit product cost on 1000 units=

Under Absorption costing:-Direct materials + Direct Labor+ Variable manufacturing overhead + fixed manufacturing overhead

=$43+ $58+$11+$15= $127 per unit

Explanation:- Unit fixed manufacturing overhead= fixed manufacturing overhead/No. of units produced

=$15000/1000 units =$ 15 per unit

Unit product cost under Variable costing:-Direct materials + Direct Labor+ Variable manufacturing overhead

=$43+$58+$11=$112 per unit

c)- Answer:-Unit product cost on 1500 units=

Under Absorption costing:-Direct materials + Direct Labor+ Variable manufacturing overhead + fixed manufacturing overhead

=$43+ $58+$11+$10= $122 per unit

Explanation:- Unit fixed manufacturing overhead= fixed manufacturing overhead/No. of units produced

=$15000/1500 units =$ 10 per unit

Unit product cost under Variable costing:-Direct materials + Direct Labor+ Variable manufacturing overhead

=$43+$58+$11=$112 per unit

ekkarill92 answered 9 months ago
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