Tall Statues Inc., produces wood statues. Management has provided the following information:
$\begin{array}{lr}
\text { Actual sales } & 30,000 \text { statues } \
\text { Budgeted production } & 50,000 \text { statues } \
\text { Selling price } & \$ 46.00 \text { per statue } \
& \
\text { Direct material costs } & \$ 6.90 \text { per statue } \
\text { Variable manufacturing costs } & \$ 3.45 \text { per statue } \
\text { Variable administrative costs } & \$ 5.75 \text { per statue } \
\text { Fixed manufacturing overhead } & \$ 4.60 \text { per statue }
\end{array}$
-What is the cost per statue if throughput costing is used?

Question

Tall Statues Inc., produces wood statues. Management has provided the following information:
 $\begin{array}{lr}
\text { Actual sales } & 30,000 \text { statues } \
\text { Budgeted production } & 50,000 \text { statues } \
\text { Selling price } & \$ 46.00 \text { per statue } \
& \
\text { Direct material costs } & \$ 6.90 \text { per statue } \
\text { Variable manufacturing costs } & \$ 3.45 \text { per statue } \
\text { Variable administrative costs } & \$ 5.75 \text { per statue } \
\text { Fixed manufacturing overhead } & \$ 4.60 \text { per statue }
\end{array}$
-What is the cost per statue if throughput costing is used?

Quizplus · Accepted Answer

Throughput costing only considers direct material costs as the cost per unit, which is $6.90 per statue.

Tall Statues Inc -What Is the Cost Per Statue If Throughput Costing Is