Question: Discuss the results, and comment on which method you think is more helpful to managers and why. Kindle Cookies Productions Costs: Direct material $0.60 Direct

Discuss the results, and comment on which method you think is more helpful to managers and why.

Kindle Cookies

Productions Costs:

Direct material $0.60

Direct labor $1.00

Variable manufacturing overhead $0.40

Total variable manufacturing costs per unit $2.00

Fixed manufacturing overhead per year $139,000.00

In addition, the company has fixed selling and administrative costs:

Fixed selling costs per year $50,000.00

Fixed administrative costs per year $65,000.00

Selling price per cookie $3.75

Number of cookies produced 2,780,000

Number of cookies sold 2,600,000

Full (absorption) costing:

Full cost per unit

Ending Inventory Full (absorption) costing

Variable costing:

Variable cost per unit

Ending Inventory Full (absorption) costing

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