Barnes Company reports the following for its product for its first year of operations.

Direct materials $ $33$ per unit

Direct labor $ $23$ per unit

Variable overhead $ $10$ per unit

Fixed overhead $ $78,000$ per year

Variable selling and administrative expenses $ $3$ per unit

Fixed selling and administrative expenses $ $35,000$ per year

The company sells its product for $$130$ per unit. Compute gross profit using absorption costing assuming the company $($a$)$ produces and sells $3,000$ units and $($b$)$ produces $3,900$ units and sells $3,000$ units.

Answer rating: 100% (QA)

Solution 1 Computation of Unit Product Cost Absorption Costing Production Production Particulars 300... View the full answer