Klotz Co. manufactures a dog shampoo called Cleanfur. Relevant data for Cleanfur in January 2013,… 1 answer below »
Klotz Co. manufactures a dog shampoo called Cleanfur. Relevant data for Cleanfur in January 2013, the first month of production, are as follows:
Selling price
$26 per unit
Units
Produced 20,000; sold 15,000; beginning inventory zero
Variable manufacturing unit costs
$10
Fixed costs
Manufacturing overhead $140,000 Selling and administrative expenses $30,000
The per unit costs under both absorption and variable costing are:
Absorption
$10
$7
$7
$10
$17
$7
$17
$10