Seel Manufacturing produces a single product, LED lighbulbs. They reported the f
ID: 2564469 • Letter: S
Question
Seel Manufacturing produces a single product, LED lighbulbs. They reported the following information from their operations last period:
Cost of Direct Materials used in production
$20,000
Cost of Direct Labor wages
$15,000
Variable Manufacturing Overhead
$10,000
Fixed Manufacturing Overhead
$50,000
Total units produced
10,000
Under variable costing, what was the per-unit cost of the units produced? Explain how you got this answer
Under absorption costing, what was the per-unit cost of the units produced? Explain how you got this answer.
Cost of Direct Materials used in production
$20,000
Cost of Direct Labor wages
$15,000
Variable Manufacturing Overhead
$10,000
Fixed Manufacturing Overhead
$50,000
Total units produced
10,000
Explanation / Answer
under variable costing only variable cost pf production is considered therefore cost is as under:
Under absoption costing all manufacturing cost is considered including fixed manufacturing cost, cost is as under:
Particulars Amt Cost of Direct Materials used in production 20,000.00 Cost of Direct Labor wages 15,000.00 Variable Manufacturing Overhead 10,000.00 Total Cost 45,000.00 Total units produced 10,000.00 Per Unit Cost 4.50