Product A Product B Estimated sales (units) 5,000 2,000 Selling price per unit $ 8.00 $ 15.00
Question:
Product A Product B
Estimated sales (units) 5,000 2,000
Selling price per unit $ 8.00 $ 15.00
Purchase price per unit $ 2.00 $ 6.00
Freight in per unit $ 1.00 $ 1.00
The total production overhead is $ 200,000 and 7% is allocated against products A and B. The allocation of this overhead is further divided on the basis of number of units sold.
Administrative overhead amounts to $ 70,000 and 10% of this overhead is allocated against products A and B. The allocation of this overhead is further divided on the basis of revenue.
Profit after allocation of both overhead amounts for product B is ________________________ .
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham