Reference no: EM132978457
Question - Beauty Supply Company manufactures shampoo. The supervisor has provided the following information and stated that standard costing is used for?manufacturing, marketing, and administrative costs.
January:
Beginning Inventory: 0
Production: 2,500
Sales: 2,250
February:
Beginning Inventory: - - -
Production: 3,000
Sales: 3,025
Other? information:
Selling price: ?$20.00
Standard variable manufacturing? cost/unit: $8.00
Standard variable? market/admin. cost/unit: $4.00
Standard fixed manufacturing overhead? cost/month: ?$40,000
Standard fixed? market/admin. cost/month: $20,000
Budgeted denominator level per month? (output units): 4,000
There were no beginning or ending inventories of materials or work-in-process.
What is the per-unit manufacturing cost using absorption? costing?