Mullee Corporation and Hurlex

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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