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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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:
| Â |
Absorption |
 |
| Â |
$10 |
$7 |
| Â |
$7 |
$10 |
| Â |
$17 |
$7 |
| Â |
$17 |
$10 |
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