Reference no: EM133185327
Question - Martin Manufacturer Ltd started its operations on 1 January 2021, and the planned production for the year was 50,000 units. This production level was achieved, but only 46,250 units were sold at $90 each.
Other relevant data are as follows: $
Direct material used 600,000
Direct labour cost incurred 300,000
Fixed manufacturing overhead (actual and planned) 375,000
Variable manufacturing (actual and planned) 180,000
Fixed selling and administrative expenses 450,000
Variable selling and administrative expenses $1.40 per unit
Required - Show all your workings. Calculate the product cost per unit under variable and absorption costing.
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