SQU Corporation is a manufacturing firm operating in Al Khoud, Muscat. Capacity in its manufacturing .activities...

 

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SQU Corporation is a manufacturing firm operating in Al Khoud, Muscat. Capacity in its manufacturing .activities could be of different types a) Differentiate the available types and suggest how) .one type of capacity is technically linked to another SQU Corporation is a manufacturing firm operating in Al Khoud, Muscat. Capacity in its manufacturing .activities could be of different types b) Discuss why you would disagree with the claim that) SQU Corporation does not need to properly allocate its .overhead costs to each of its products SQU Corporation manufactures 5 products to local market in Muscat. The following are the firm's costin data: Net Operating Income 2019 OMR87,900 Net Operating Income 2020 OMR84,400 (Under Variable Costing) (Under Variable Costing) increase in closing inventory (2019) Other Variable Costs (2020) 1,300 OMR60,000 (units) Total Fixed Manufacturing Overhead (2020) OMR200,000 Production in units (2020) 260,000 Sold units (2020) 45,000 Sales (2020) OMR250,000 Total Variable Manufacturing Overhead 2020) OMR220,000 Other Fixed Costs (2020) OMR50,000 a) Assuming that the Fixed Manufacturing Overhead cost per unit is OMR2, calculate the Net Operating Income under absorption costing for both 2019 and 2020. SQU Corporation is a manufacturing firm operating in Al Khoud, Muscat. Capacity in its manufacturing .activities could be of different types a) Differentiate the available types and suggest how) .one type of capacity is technically linked to another SQU Corporation is a manufacturing firm operating in Al Khoud, Muscat. Capacity in its manufacturing .activities could be of different types b) Discuss why you would disagree with the claim that) SQU Corporation does not need to properly allocate its .overhead costs to each of its products SQU Corporation manufactures 5 products to local market in Muscat. The following are the firm's costin data: Net Operating Income 2019 OMR87,900 Net Operating Income 2020 OMR84,400 (Under Variable Costing) (Under Variable Costing) increase in closing inventory (2019) Other Variable Costs (2020) 1,300 OMR60,000 (units) Total Fixed Manufacturing Overhead (2020) OMR200,000 Production in units (2020) 260,000 Sold units (2020) 45,000 Sales (2020) OMR250,000 Total Variable Manufacturing Overhead 2020) OMR220,000 Other Fixed Costs (2020) OMR50,000 a) Assuming that the Fixed Manufacturing Overhead cost per unit is OMR2, calculate the Net Operating Income under absorption costing for both 2019 and 2020.