Question: Problem 6A-4 Super-Variable Costing and Variable Costing Unit Product Costs and Income Statements LO6-2, LO6-6] Ogilvy Company manufactures and sells one product. The following information
Problem 6A-4 Super-Variable Costing and Variable Costing Unit Product Costs and Income Statements LO6-2, LO6-6] Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Direct materials Direct labor Fixed selling and adninistrative expenses 34 Fixed costs per year: $2,106,86e $ 840,eee $ 314,800 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 78,000 units and sold 78,000 units. During,its second year of operations, it produced 78,000 units and sold 72.600 units. In its third year, Ogilvy produced 78,000 units and sold 83,400 units. The selling price of the company's product is $76 per unit. Required 1. Assume the company uses super-variable costing a. Compute the unit product cost for Year 1, Year 2, and Year 3 b. Prepare an income statement for Year 1, Year 2, and Year 3
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