Ramort Company reports the following for its single product. Ramort produced and sold 21,600 units this...
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Ramort Company reports the following for its single product. Ramort produced and sold 21,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead $ 18 per unit $ 20 per unit $ 11 per unit $ 43,200 per year $4 per unit Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 66,800 per year $ 84 per unit Ramort doubles its production from 21,600 to 43,200 units while sales remain at the current 21,600 unit level. (a) Compute gross profit when production is 43,200 units under absorption costing. (b) What is the change in gross profit by increasing production from 21,600 units to 43,200 units under absorption costing? Ramort Company reports the following for its single product. Ramort produced and sold 21,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead $ 18 per unit $ 20 per unit $ 11 per unit $ 43,200 per year $4 per unit Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 66,800 per year $ 84 per unit Ramort doubles its production from 21,600 to 43,200 units while sales remain at the current 21,600 unit level. (a) Compute gross profit when production is 43,200 units under absorption costing. (b) What is the change in gross profit by increasing production from 21,600 units to 43,200 units under absorption costing?
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Calculate the gross profit under absorption costing when production is 43200 units Where Direct mate... View the full answer
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
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