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Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics...

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Accounting

Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customers ear. Cost data for the product follow: Variable costs per unit: Direct materials $ 7 Direct labour 18 Variable factory overhead 9 Variable selling and administrative 4 Total variable costs per unit $ 38 Fixed costs per month: Fixed manufacturing overhead $ 267,800 Fixed selling and administrative 226,600 Total fixed cost per month $ 494,400 The product sells for $63 per unit. Production and sales data for May and June, the first two months of operations, are as follows

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