Calculate the total cost and the unit cost

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Question - ABC Engineering incurred the following costs in making and selling 420 units of finished product. There was no incomplete work during the period.

Plant and maintenance costs $1,659

Direct material 4,536

Marketing 2,400

Factory insurance 1,748

Factory power 3,465

Direct labour 7,560

Factory rent 4,552

Required -

1. Calculate the total cost and the unit cost where the firm uses:

a) Absorption costing, and

b) Direct costing

2. If the selling price is $70 per unit, calculate the gross and net profits under each method.

a) Absorption costing, and

B) Direct costing

Reference no: EM133015591

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