(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January

One of your coworkers notes, “This whole subject of differential costing
February 12, 2020
What is the differences in financial statements for service organizations, retail companies, and manufacturing companies?
February 12, 2020

(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January

operations:

 Direct materials

$105 per unit

Fixed manufacturing overhead costs

$675,000

Sales price

$395 per unit

Variable manufacturing overhead

$60 per unit

Direct labor

$120 per unit

Fixed marketing and administrative costs

$585,000

Units produced and sold

30,000

Variable marketing and administrative costs

$24 per unit

What is the full cost per unit?

$351.00

$331.50

$309.00

$327.00

 
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