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Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for...

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Accounting

Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for $32 per unit. Information about costs, production, and sales for the month of March is provided below:
Variable Costs
Fixed Costs
Direct materials
$10.00/unit
Manufacturing overhead
$23,000
Direct labour
$4.50/unit
Selling and Administration
$10,000
Variable manufacturing overhead
$2.50/unit
Units produced in period
6,000
Variable selling/administration
$2.00/unit
Units sold in period
6,000
Beginning inventory
$0
Total period costs for Whiz Mixer using absorption costing is
Question 7Answer
a.
$125,000
b.
$37,000
c.
$22,000
d.
$33,000

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