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Shadowlands Inc. produces venetian blinds for homes and business. They reported the following financial informationfor the...

Shadowlands Inc. produces venetian blinds for homes and business. They reported the following financial informationfor the previous period:

Direct Materials: 3,000 units used (purchased at $50/unit)

Direct Labor: 200 hrs/employee; 15 employees each paid at $20/hr

Production Manager Salary: $6,000

Accounting Manager Salary: $5,000

Factory Rent: $15,000

Administration Building Rent: $1,500

Factory Utilities (variable cost): $4,000

Equipment Depreciation (fixed cost): $1,500

Equipment Maintenance (variable cost): $500

Total units produced in the period: 1500

1. What is the per-unit cost of inventory produced under absorption costing?

2. What it the per-unit cost of inventory produced under variable costing?

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ekkarill92 answered 1 year ago
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