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Lily's Pastries Produces Cupcakes, Which Sell for $5

Question 138

Multiple Choice

Lily's Pastries produces cupcakes, which sell for $5.10 each. During the current month, Lily produced, but only sold 2700 cupcakes. The variable cost per cupcake was $3.40 and the sales commission per cupcake was $0.50. Total fixed manufacturing costs were $1700 and total fixed marketing and administrative costs were $900. What is the product cost per cupcake under absorption costing? Lily's Pastries produces cupcakes, which sell for $5.10 each. During the current month, Lily produced, but only sold 2700 cupcakes. The variable cost per cupcake was $3.40 and the sales commission per cupcake was $0.50. Total fixed manufacturing costs were $1700 and total fixed marketing and administrative costs were $900. What is the product cost per cupcake under absorption costing? A) $3.93 B) $5.63 C) $5.10 D) $3.40


A) $3.93
B) $5.63
C) $5.10
D) $3.40

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