How much would charge tito and why

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Reference no: EM132706189

You are given the following data for Serpe Inc., a manufacturer of vanilla vodka-scented face masks.

Direct labor $ 3.50 per unit

Direct materials $ 1.25 per unit

Overhead

Total variable overhead $ 41,400

Total fixed overhead $ 150,000

Expected units to be produced 18,000 units

Problem a) Calculate the total product cost per unit under absorption costing.

Problem b) Calculate the total product cost per unit under variable costing.

Problem c) Tito's Vodka is doing a fundraiser and wants to purchase a 1,000 specially branded vodka face masks to donate. Serpe has sufficient capacity to produce them. How much would you charge Tito's, and why? (Note: There is no specific right answer, don't kill yourself trying to find Tito's in the textbook. Or Serpe.)

Reference no: EM132706189

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