Burns company incurred the following costs during the year:
direct materials $24.50 per unit; direct labor $15.60 per unit; variable manufacturing overhead $18.10 per unit; variable selling and administrative costs $8.90 per unit; fixed manufacturing overhead $132,000; and fixed selling and administrative costs $11,000.
burns produced 6,600 units and sold 6000 units. determine the manufacturing cost per unit
(a) absorption costing.
(b) variable costing. (round answers to 2 decimal places, e.g. 52.75.)

Instrucitons are listed below.

Explanation:

Giving the following information:

Direct materials $24.50 per unit; direct labor $15.60 per unit; variable manufacturing overhead $18.10 per unit; variable selling and administrative costs $8.90 per unit; fixed manufacturing overhead $132,000; and fixed selling and administrative costs $11,000.

Burns produced 6,600 units and sold 6000 units.

1) Absorption costing= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 24.5 + 15.6 + 18.1 + (132,000/6,600)= 78.2

2) Variable costing= direct material + direct labor + variable overhead + variable selling and administrative costs

Unitary costs= 24.5 + 15.6 + 18.1 + 8.9= 67.1

municipal bonds

Explanation:

If they want to invest the $100,000, the only way they can do it and avoid federal income taxes is by investing on municipal bonds. Any other type of tax free or deferred tax invested is limited to only a few thousand dollars per year.

Municipal bonds are issued by cities and even states, and their are generally very secure bonds and they are not taxed by the federal government. Depending on your state or city, they can be subject to state and municipal income taxes.