2. What is the cost per statue if throughput costing is used?

ACCOUNTING

Multiple Choice

Stober Company produces a specialty item. Management has provided the following information:

Actual sales 60,000 units

Budgeted production 50,000 units

Selling price $40.00 per unit



Direct material costs $10.00 per unit

Variable manufacturing overhead $3.00 per unit

Variable administrative costs $5.00 per unit

Fixed manufacturing overhead $4.00 per unit



What is the cost per statue if throughput costing is used?

a. $22.00

b. $19.00

c. $15.00

d. $10.00

Click here for the SOLUTION