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What is the product cost per bicycle if the company uses

Exercise- Absorption Costing vs. Variable Costing

Munn Bicycle Company manufactures bicycles specifically for college campuses. The bicycles sell for $100 and are very sturdy, with built-in saddlebags on the rear designed to carry backpacks. Selected data for last year's operations are as follows:

Required:

Round your answers to the nearest cent, if necessary.

A. What is the product cost per bicycle if the company uses absorption costing?

B. What is the product cost per bicycle if the company uses variable costing?

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Accounting Basics: What is the product cost per bicycle if the company uses

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