Pennington Inc. makes tables. The cost to manufacture an unfinished table is $37. Below is detail...
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Pennington Inc. makes tables. The cost to manufacture an unfinished table is $37. Below is detail information of manufacturing cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15 $10 $8 $4 The selling price per unfinished unit is $50. Company has unused capacity that can be used to finish the tables and sell them at $60 per unit. For a finished table, direct materials will increase $3 and direct labor costs will increase $2. Variable manufacturing overhead costs will be 80% of direct labor costs. No increase is anticipated in fixed manufacturing overhead. If the company choose to produce 1000 finished tables, net income will increase by Pennington Inc. makes tables. The cost to manufacture an unfinished table is $37. Below is detail information of manufacturing cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15 $10 $8 $4 The selling price per unfinished unit is $50. Company has unused capacity that can be used to finish the tables and sell them at $60 per unit. For a finished table, direct materials will increase $3 and direct labor costs will increase $2. Variable manufacturing overhead costs will be 80% of direct labor costs. No increase is anticipated in fixed manufacturing overhead. If the company choose to produce 1000 finished tables, net income will increase by
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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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