Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales...
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Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Production volume 68,000 units 96,000 units Cost of goods sold per unit Number of units sold Total cost of goods sold Sales Cost of goods sold Gross margin 68,000 units 56.88 per unit 9.80 per unit 7.38 per unit 11.88 per unit $ 979,200 in total $ $ $ $ Jacquie Inc. Income statement through gross margin Gross margin increases by: Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Sales volume 68,000 units If Jacquie increases its production to 96,000 units, while sales remain at the current 68,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production. S 68,000 units 0 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead Cost of goods sold: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Production volume 68,000 units 96,000 units Cost of goods sold per unit Number of units sold Total cost of goods sold Sales Cost of goods sold Gross margin 68,000 units 56.88 per unit 9.80 per unit 7.38 per unit 11.88 per unit $ 979,200 in total $ $ $ $ Jacquie Inc. Income statement through gross margin Gross margin increases by: Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: Sales volume 68,000 units If Jacquie increases its production to 96,000 units, while sales remain at the current 68,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production. S 68,000 units 0
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Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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