Reference no: EM132982955

Overtime produces and sells a mantel clock for $200 per unit. In 2020, 41,000 clocks were produced and 37,000 were sold. Other information for the year includes:

Direct materials $42.00 per unit
Direct manufacturing labor $8.00 per unit
Variable manufacturing costs $5.00 per unit
Sales commissions $14.50 per unit
Fixed manufacturing costs $64.00 per unit
Administrative expenses, all fixed $38.50 per unit

Problem 1: What is the inventoriable cost per unit using absorption costing and variable costing?

a. $119.00, $55.00
b. $117.00, $53.00
c. $49.00, $51.00
d. $53.00, $42.00