Donovan Company incurred the following costs while producing 2,000 units: direct materials $15 per unit,...
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Accounting
Donovan Company incurred the following costs while producing 2,000 units: direct materials $15 per unit, direct labor $5 per unit, variable manufacturing overhead $12 per unit, variable selling/admin costs $14 per unit, total fixed overhead costs $20,000, total fixed selling/admin costs $10,000. There are no beginning inventories.
What is the unit product cost using absorption and variable costing? What is the operating income using absorption costing if 1,800 units are sold for $100 each?
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