Dayton, Inc. manufactured 15,000 units of product last month and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used $ 1,006,000 Direct labor 2,089,000 Indirect materials and supplies 233,000 Power to run plant equipment 214,000 Fixed costs: Supervisory salaries 945,000 Plant utilities (other than the power to run plant equipment) 295,000 Depreciation on plant and equipment (straight-line, time basis) 148,000 Property taxes on building 192,000.
Unit variable costs and total fixed costs are expected to remain unchanged next month. Calculate the unit cost and the total cost if 21,000 units are produced next month.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.