During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity...

Transcribed Image Text:

During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity was the same as the budgeted production quantity. There was no cost variances during the year as the budgeted costs and the actual costs were the same during the year. The following data has been made available to you: Budgeted and actual production units Number of units sold during the year Budgeted DM cost per unit 225,000 170,000 $12 Budgeted DL cost per unit $6 Budgeted Variable manufacutring OH cost per unit $3 Budgeted varable marketing cost per unit $12 Budgeted fixed manufacutring cost for the year $675,000 Budgeted fixed marketing cost for the year $420,000 $40 Selling price per unit of the product Fixed manufacturing cost is allocated using number of units of production. Required: a) Calculate the operating income using absorption costing b) Calculate the operating income using variable costing c) Calculate the operating income using throughput costing During the first year of operations, Kardesh Inc. produced only one product. The actual production quantity was the same as the budgeted production quantity. There was no cost variances during the year as the budgeted costs and the actual costs were the same during the year. The following data has been made available to you: Budgeted and actual production units Number of units sold during the year Budgeted DM cost per unit 225,000 170,000 $12 Budgeted DL cost per unit $6 Budgeted Variable manufacutring OH cost per unit $3 Budgeted varable marketing cost per unit $12 Budgeted fixed manufacutring cost for the year $675,000 Budgeted fixed marketing cost for the year $420,000 $40 Selling price per unit of the product Fixed manufacturing cost is allocated using number of units of production. Required: a) Calculate the operating income using absorption costing b) Calculate the operating income using variable costing c) Calculate the operating income using throughput costing

Answer rating: 100% (QA)

a Calculation of Operating Income using Absorption Costing 1 Calculate the Budgeted Total Variable M... View the full answer