Bowie Inc., a manufacturer of earnings, has accumulated the following cost information for products A and B: A B Total Production volume 500 1,000 Engineering costs incurred $2,000 $3,000 $5,000 Engineering costs per batch $800 $1,500 Batch size 200 500 Total direct manufacturing labor hours 750 1,400 2,150 Direct manufacturing labor hours/unit 1.5 1.4 Assuming activity-based costing (ABC) is used, what is the engineering cost per unit for products A?

Penn Company has accumulated the following costs in relation to the production and sales of 5,800 units during its first year of operations: Direct materials $35,000 Direct labor $7 per unit Variable manufacturing overhead 80% of direct labor Variable selling and administrative costs $5 per unit sold Fixed manufacturing overhead $40,000 Fixed selling and admnistrative costs $50,000 Using variable costing, determine Penn’s total product costs for the year.

When calculating inventory for the balance sheet using variable costing as opposed to absorption costing, the inventory values will generally be

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