If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $444,000, what...

If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $444,000, what is the manufacturing cost per unit if a. 6,000 units are manufactured and the company uses the variable costing concept? $ b. 7,400 units are manufactured and the company uses the variable costing concept? $ c. 6,000 units are manufactured and the company uses the absorption costing concept? $ d. 7,400 units are manufactured and the company used the absorption costing concept?

Expert Solution


a.)	Units manufactured	6,000
	Variable Manufacturing cost per unit	8
	Total Variable Manufacturing Cost	48,000

	Under variable costing, only variable manufacturing cost will form part of Manufacturing cost.

	Manufacturing cost per unit	8	( 48,000 / 6,000 )


b.)	Units manufactured	7,400
	Variable Manufacturing cost per unit	8
	Total Variable Manufacturing Cost	59,200

	Under variable costing, only variable manufacturing cost will form part of Manufacturing cost.

	Manufacturing cost per unit	8	( 59,200 / 7,400 )

C.)	Units manufactured	6,000
	Variable Manufacturing cost per unit	8
	Total Variable Manufacturing Cost	48,000

	Total Fixed manufacturing cost	444,000

	Total Manufacturing Cost	492,000


	Under absorption costing, both variable manufacturing cost & fixed manufacturing cost will form part of Manufacturing cost.

	Manufacturing cost per unit	82	( 492,000 / 6,000)


d.)	Units manufactured	7,400
	Variable Manufacturing cost per unit	8
	Total Variable Manufacturing Cost	59,200

	Total Fixed manufacturing cost	444,000

	Total Manufacturing Cost	503,200


	Under absorption costing, both variable manufacturing cost & fixed manufacturing cost will form part of Manufacturing cost.

	Manufacturing cost per unit	68	( 503,200 / 7,400)

ekkarill92 answered 3 years ago

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If variable manufacturing costs are $8 per unit and total fixed manufacturing costs are $444,000, what...

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