During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity was
Question:
During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity was the same as the budgeted production quantity. There was no cost variances during the year as the budgeted costs and the actual costs were the same during the year.The following data has been made available to you:Budgeted and actual production units250,000Number of units sold during the year170,000Budgeted DM cost per unit$10Budgeted DL cost per unit$6Budgeted Variable manufacutring OH cost per unit$3Budgeted varable marketing cost per unit$13Budgeted fixed manufacutring cost for the year$750,000Budgeted fixed marketing cost for the year$420,000Selling price per unit of the product$41Fixed manufacturing cost is allocated using number of units of production.
Required:
Calculate the operating income using absorption costingb) .
Calculate the operating income using variable costingc) .
Calculate the operating income using throughput costing.
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher