What is the product cost per cupcake under absorption


Lily's Pastries produces cupcakes, which sell for $ 5.00 each. During the current month, Lily produced 3,000 cupcakes, but only sold 2,500 cupcakes. The variable cost per cupcake was $ 3.00 and the sales commission per cupcake was $ 0.90. Total fixed manufacturing costs were $ 1,600 and total fixed marketing and administrative costs were $ 1,200. What is the product cost per cupcake under absorption costing?

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Accounting Basics: What is the product cost per cupcake under absorption
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