Colorado Company provided the following information regarding its only product--ice skates. $$\begin{array}{l}
\begin{array} { l r }
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 220,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 75,000 \
\text { Selling unit price } & 84\\\text { Units produced and sold } &10,000
\end{array}\

\end{array}$$ _____ is the manufacturing cost per unit if the absorption approach is used.
A)$28
B)$30
C)$36
D)$40

Question

Colorado Company provided the following information regarding its only product--ice skates. $$\begin{array}{l}
\begin{array} { l r } 
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 220,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 75,000 \
\text { Selling unit price } & 84\\\text { Units produced and sold } &10,000
\end{array}\

\end{array}$$ _____ is the manufacturing cost per unit if the absorption approach is used.
A)$28
B)$30
C)$36
D)$40

Quizplus · Accepted Answer

The Answer of Colorado Company provided the following information regarding its only product--ice skates. $$\begin{array}{l}
\begin{array} { l r } 
\text { Direct materials used } & \$ 200,000 \
\text { Direct labor } & 80,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 220,000 \
\text { Variable overhead } & 20,000 \
\text { Variable selling and administrative } & 75,000 \
\text { Selling unit price } & 84\\\text { Units produced and sold } &10,000
\end{array}\

\end{array}$$ _____ is the manufacturing cost per unit if the absorption approach is used.
A)$28
B)$30
C)$36
D)$40

Colorado Company Provided the Following Information Regarding Its Only Product--Ice