Burns Company incurred the following costs during the year: direct materials $20 per unit; direct labor $14

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Burns Company incurred the following costs during the year: direct materials $20 per unit; direct labor $14 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per unit; fixed manufacturing overhead $128,000; and fixed selling and administrative costs $10,000. Burns produced 8,000 units and sold 6,000 units. Determine the manufacturing cost per unit under
(a) Absorption costing and
(b) Variable costing.

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Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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