Question:
Components of Full Costs
Gibson Corporation has compiled the following information from the accounting system for the one product it sells:
|
Sales price
|
$300 per unit
|
|
Fixed costs (for the month)
|
|
|
Marketing and administrative
|
$36,000
|
|
Manufacturing overhead
|
$54,000
|
|
Variable costs (per unit)
|
|
|
Marketing and administrative
|
$6
|
|
Direct materials
|
$90
|
|
Manufacturing overhead.
|
$20
|
|
Direct labor
|
$55
|
|
Units produced and sold (for the month)
|
1,800
|
Required
Determine each of the following unit costs:
a. Variable manufacturing cost.
b. Variable cost.
c. Full absorption cost.
d. Full cost.