Q4 : Mullee Corporation produces a single product and has the following cost structure:
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The unit product cost under absorption costing is:
| A) $149 |
| B) $65 |
| C) $63 |
| D) $128 |
Q5: Hurlex Company produces a single product. Last year, Hurlex manufactured 15,000 units and sold 12,000 units. Production costs for the year were as follows:
Sales totaled $840,000 for the year, variable selling expenses totaled $60,000, and fixed selling and administrative expenses totaled $180,000. There were no units in the beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit would be:
| A) $39 |
| B) $34 |
| C) $95 |
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