Blackbird, Incorporated reports the following information regarding its production cost:
$$\begin{array} { | l | l | }
\hline \text { Units produced } & 39,000 \text { units } \
\hline \text { Direct labor } & \$ 13 \text { per unit } \
\hline \text { Direct materials } & \$ 17 \text { per unit } \
\hline \text { Variable overhead } & \$ 200 \text { per unit } \
\hline \text { Fixed overhead } & \$ 9,750,000 \text { in total } \
\hline
\end{array}$$ a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.

Question

Blackbird, Incorporated reports the following information regarding its production cost:
 $$\begin{array} { | l | l | } 
\hline \text { Units produced } & 39,000 \text { units } \
\hline \text { Direct labor } & \$ 13 \text { per unit } \
\hline \text { Direct materials } & \$ 17 \text { per unit } \
\hline \text { Variable overhead } & \$ 200 \text { per unit } \
\hline \text { Fixed overhead } & \$ 9,750,000 \text { in total } \
\hline
\end{array}$$ a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.

Quizplus · Accepted Answer

The Answer of Blackbird, Incorporated reports the following information regarding its production cost:
 $$\begin{array} { | l | l | } 
\hline \text { Units produced } & 39,000 \text { units } \
\hline \text { Direct labor } & \$ 13 \text { per unit } \
\hline \text { Direct materials } & \$ 17 \text { per unit } \
\hline \text { Variable overhead } & \$ 200 \text { per unit } \
\hline \text { Fixed overhead } & \$ 9,750,000 \text { in total } \
\hline
\end{array}$$ a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.

Blackbird, Incorporated Reports the Following Information Regarding Its Production Cost