In the coming year, Imre Company expects to sell 56,900 units at $26 each. Imre's controller provided
Question:
Units production.................................... 60,000
Unit direct materials................................. $9.30
Unit direct labor...................................... $2.75
Unit variable overhead.............................. $1.65
Unit fixed overhead*................................ $2.50
Unit selling expense (variable)..................... $2.00
Total fixed selling expense...................... $65,500
Total fixed administrative expense.............. $244,000
*The unit fixed overhead is based on 60,000 units produced.
Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate operating income under absorption costing for next year.
4. Calculate operating income under variable costing for next year
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Related Book For
Cornerstones Of Managerial Accounting
ISBN: 9780538473460
4th Edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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