Exercise Algo Variable and Absorption Costing Unit Product Costs LO
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $ Selected data for the company's operations last year follow:
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor $
Variable manufacturing overhead $
Variable selling and administrative $
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
$
$
Required:
Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. Round your intermediate calculations and final answer to the nearest whole dollar amount.
Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Absorption costing unit product cost
Variable costing unit product cost
