Author Question: AAA Manufacturing Inc, makes a product with the following costs per unit: Direct materials $180 ... (Read 101 times)

mmm · **on:** Mar 6, 2021

Question 1

________ method includes fixed manufacturing overhead costs as inventoriable costs.
◦ Variable costing
◦ Absorption costing
◦ Throughput costing
◦ Activity-based costing

Question 2

AAA Manufacturing Inc, makes a product with the following costs per unit:

Direct materials $180
Direct labor $20
Manufacturing overhead (variable) $30
Manufacturing overhead (fixed) $130
Marketing costs $75

What would be the inventoriable cost per unit under variable costing and what would it be under absorption costing?
◦ $180 for variable costing and $305 under absorption costing
◦ $230 for variable costing and $305 under absorption costing
◦ $230 for variable costing and $360 under absorption costing
◦ $200 for variable costing and $305 under absorption costing

ktidd · **Reply #1 on:** Mar 6, 2021

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