Business, 12.10.2021 14:00 helper55

Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt
Direct materials $9.90
Direct labor 3.70
Variable manufacturing overhead 1.35
Variable selling and administrative expenses 0.75
Fixed Cost per Month:
Fixed manufacturing overhead $17,440
Fixed selling and administrative expenses 5,250

Dance Creations charges $32 for each skirt that it sells. During the first month of operation, it made 1,600 skirts and sold 1,480.

Required:
Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month.

Answers: 1

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