Lily's Pastries produces cupcakes, which sell for $5.10 each. During the current month, Lily produced 3200 cupcakes, 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?

$3.93

Explanation:

Given the following

Variable cost per unit = $3.40

Fixed manufacturing cost = $1700

Total Units produced=3200

Uaing absorption costing which incorporates the cost of fixed manufacturing cost of goods in the unit price of goods.

Absorption costing per unit = Variable cost per unit + fixed cost per unit

Variable cost per unit = $3.40

Fixed cost per unit = (Total manufacturing cost ÷ Total unit produced)

Fixed cost per unit = $1700 ÷ 3200 = $0.53

Absorption costing per unit = $3.40 + $0.53 = $3.93

idk the answer so dont listen to me but 23

i just took the test and it is financing