If variable manufacturing costs are $16 per unit and total fixed manufacturing costs are $401,500, what is the manufacturing cost per unit a.$5,500 units are manufactured and the company uses the variable costing concept? b.$7,300 units are manufactured and the company uses the variable costing concept? $ c.$5,500 units are manufactured and the company uses the absorption costing concept? $ d.$7,300 units are manufactured and the company uses the absorption costing concept? $

a. $16

b. $16

c. $89

d. $71

Explanation:

Variable Product Cost per Unit = Direct Labor + Direct Materials + Variable Overheads

Absoption Product Cost per Unit = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

manufacturing cost per unit

(a) 5,500 units are manufactured and the company uses the variable costing concept

manufacturing cost per unit = Variable Costs

=$16

(a) 7,300 units are manufactured and the company uses the variable costing concept

manufacturing cost per unit = Variable Costs

=$16

(c) 5,500 units are manufactured and the company uses the absorption costing concept

manufacturing cost per unit = Variable Costs + Fixed Costs

=$16 + ($401,500/5,500)

= $16 + $73

= $89

(d) 7,300 units are manufactured and the company uses the absorption costing concept

manufacturing cost per unit = Variable Costs + Fixed Costs

=$16 + ($401,500/7,300)

= $16 + $55

= $71