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

ACCOUNTING

Multiple Choice

Reusser Company produces wood statues. Management has provided the following information:



Actual sales 80,000 statues

Budgeted production 100,000 statues

Selling price $20.00 per statue



Direct material costs $5.00 per statue

Variable manufacturing costs $1.50 per statue

Variable administrative costs $2.50 per statue

Fixed manufacturing overhead $2.00 per statue



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

a. $11.00

b. $9.50

c. $7.50

d. $5.00

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