The following cost behavior patterns describe anticipated manufacturing costs for 2022: raw material, $7/unit; direct labor, $10/unit;
Question:
The following cost behavior patterns describe anticipated manufacturing costs for 2022: raw material, $7/unit; direct labor, $10/unit; and manufacturing overhead, $240,000 + $8/unit.
Required:
If anticipated production for 2022 is 30,000 units, calculate the unit cost using variable costing and absorption costing. Explain the difference.
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