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Watt Corporation has just completed its first year of operation. Below are selec

ID: 2480453 • Letter: W

Question

Watt Corporation has just completed its first year of operation. Below are selected data;

Number of units produced

10,000

Number of units sold

8,000

Selling price per unit

$30.00

Cost per unit:

Direct materials

$3.00

Direct labor

5.00

Variable overhead

1.00

Variable selling expenses

2.00

Fixed expenses:

Fixed overhead

$40,000

Fixed selling expenses

35,000


The operating income using absorption costing is

Number of units produced

10,000

Number of units sold

8,000

Selling price per unit

$30.00

Cost per unit:

Direct materials

$3.00

Direct labor

5.00

Variable overhead

1.00

Variable selling expenses

2.00

Fixed expenses:

Fixed overhead

$40,000

Fixed selling expenses

35,000

Explanation / Answer

Answer:-

Statement Showing Unit Cost Particulars Unit cost Direct materials 3 Direct labor 5 Variable overhead 1 Fixed Overhead 4 Total 13
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