EXERCISE 2-13 (15 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS

2. Direct materials: $320,000 ÷ 40,000 units = $8 per unit.

Rent, factory building: $120,000 ÷ 40,000 units = $3 per unit.