The Dearn completed: n produces and sells a single product. The following data r

Question

The Dearn completed: n produces and sells a single product. The following data refer to the year just Beginning inventory Units produced Units sold 32,800 29,000 nit Selling price per u Se S 452 and administrative expenses: lling Variable per unit Fixed (total) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit S Fixed manufacturing overhead (total) 23 S 406,000 S 228 51 35 S 557,800 Assume that direct labor is a variable cost. Required: a. Compute the cost of a single unit of product under both the absorption costing and variable costing Cost per unit Absorption costing Variable costing b. Prepare an income statement for the year using absorption costing Costing Income

Explanation / Answer

a)

b)

c)

d)

Cost per unit Absorption costing Variable costing Direct material cost $                                228 $                          228 Direct Labour $                                  61 $                            61 Variable manufacturing overhead $                                  35 $                            35 Fixed Manufacturing overhead (557,600 / 32,800) $                                  17 Cost per unit $                                341 $                          324

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.