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Variable Cost per Unit (VCPU)= $ 5 per unit Fixed Cost per Unit (FCPU): $ 5 per unit The company produced 1,000 units and sold
Variable Cost per Unit (VCPU)= $ 5 per unit
Fixed Cost per Unit (FCPU): $ 5 per unit
The company produced 1,000 units and sold 990 units.
1) Compute the fixed manufacturing overhead per unit.
2) Prepare the income statement using the absorption costing system. Ignore Income tax.
3) Prepare the income statement using the variable costing system. Ignore Income tax.
4) Reconciliate the difference in the net income between the two financial statements in question 1.
Fixed Cost per Unit (FCPU): $ 5 per unit
The company produced 1,000 units and sold 990 units.
1) Compute the fixed manufacturing overhead per unit.
2) Prepare the income statement using the absorption costing system. Ignore Income tax.
3) Prepare the income statement using the variable costing system. Ignore Income tax.
4) Reconciliate the difference in the net income between the two financial statements in question 1.
Type of cost Direct material Direct labor MOH Selling and administrative expense Total Total cost $ 10,000 $ 5,000 $ 23,000 $ 9,900 $ 28,100 Variable cost $ 5,000 $ 2,500 $ 11,500 $ 2,970 $ 16,030 Fixed cost $ 5,000 $ 2,500 $ 11,500 $ 6,930 12,070
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1 Fixed Manufacturing Overhead per Unit FMOHPU Total Fixed Manufacturing Overhead Fixed Cost of MOH 11500 Number of Units Produced 1000 FMOHPU Total F...Get Instant Access to Expert-Tailored Solutions
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