Fortran Industries produces burner elements for stoves. Each element sells for $20, and the company sells approximately
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Question:
Fortran Industries produces burner elements for stoves. Each element sells for $20, and the company sells approximately 2,000,000 elements each year. Unit cost data for the year follows:
| Direct material | | $5.00 |
| Direct labor | | 3.00 |
| | | |
| Other costs: | Variable | Fixed |
| Manufacturing | $2.50 | $5.00 |
| Distribution | 1.50 | 1.00 |
The unit cost of an element for variable costing inventory purposes is:
Select one:
a. $15.50
b. $12.00
c. $10.50
d. $7.00
Expert Answer:
Related Book For 
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
