Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for
Question:
Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year:
Units production30,000Unit direct materials$ 9.95Unit direct labor$ 2.75Unit variable overhead$ 1.65Unit fixed overhead*$ 2.50Unit selling expense (variable)$ 2.00Total fixed selling expense$ 65,500Total fixed administrative expense$231,000
* The unit fixed overhead is based on 30,000 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.
I got the answer for part 1 and 2 with the homework help from your site, but parts 3 and 4 were wrong. Can you please help me understand how to calculate part 3 and 4? Thank you.
Expert Answer:
Sure lets go through the calculations for parts 3 and 4 3 Operating income under absorption costing for next year Under absorption costing fixed manuf... View the full answer
