Olguin Corporation produces a single product and has the following cost structure: Olguin produced 12,000 units...

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Olguin Corporation produces a single product and has the following cost structure: Olguin produced 12,000 units during the year and sold 8,000 of these units. There was no beginning inventory. The actual variable cost per unit was $10.00 and the total manufacturing overhead was $320,000. Total fixed general, selling and administrative expenses was $360,000. NOTE: The total manufacturing overhead includes the $10.00 variable cost per unit cost. Direct labor Direct Materials Description Variable General and administrative expenses Variable selling expenses Required: Compute the unit cost under absorption costing. Compute the unit cost under variable costing. Per unit amount $10.00 $6.00 $2.00 $1.00 If the Olguin's product sell for $400 per unit calculate the per unit contribution margin. Olguin Corporation produces a single product and has the following cost structure: Olguin produced 12,000 units during the year and sold 8,000 of these units. There was no beginning inventory. The actual variable cost per unit was $10.00 and the total manufacturing overhead was $320,000. Total fixed general, selling and administrative expenses was $360,000. NOTE: The total manufacturing overhead includes the $10.00 variable cost per unit cost. Direct labor Direct Materials Description Variable General and administrative expenses Variable selling expenses Required: Compute the unit cost under absorption costing. Compute the unit cost under variable costing. Per unit amount $10.00 $6.00 $2.00 $1.00 If the Olguin's product sell for $400 per unit calculate the per unit contribution margin.

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To compute the unit cost under absorption costing we need to include both variable and fixed manufac... View the full answer