Santa Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r }
\text { Direct materials used } & \$ 450,000 \
\text { Direct labor } & 170,000 \
\text { Fixed overhead } & 80,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 40,000 \
& \
\text { Units produced and sold } & 40,000
\end{array}$$ The manufacturing cost per unit by using the absorption approach is _____.
A)$13.00
B)$13.50
C)$14.75
D)$18.00

Question

Santa Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 450,000 \
\text { Direct labor } & 170,000 \
\text { Fixed overhead } & 80,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 40,000 \
& \
\text { Units produced and sold } & 40,000
\end{array}$$ The manufacturing cost per unit by using the absorption approach is _____.
A)$13.00
B)$13.50
C)$14.75
D)$18.00

Quizplus · Accepted Answer

The Answer of Santa Company provided the following information regarding its only product--skateboards. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 450,000 \
\text { Direct labor } & 170,000 \
\text { Fixed overhead } & 80,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 40,000 \
& \
\text { Units produced and sold } & 40,000
\end{array}$$ The manufacturing cost per unit by using the absorption approach is _____.
A)$13.00
B)$13.50
C)$14.75
D)$18.00

Santa Company Provided the Following Information Regarding Its Only Product--Skateboards