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