Question: Production cost; absorption vs . variable costing In its first year of business, Ollie s Olive Oil produced 1 0 4 , 0 0 0
Production cost; absorption vs variable costing
In its first year of business, Ollies Olive Oil produced quarts of olive oil. During its first year, the company sold quarts of olive oil. Costs incurred during the year were as follows:
Ingredients used$Direct laborVariable overheadFixed overheadVariable selling expensesFixed selling and administrative expensesTotal actual costs$
a
What was the actual production cost per quart under variable costing? $Answer
What was the actual production cost per quart under absorption costing? $Answer
b What was variable cost of goods sold for the year under variable costing? $Answer
c What was cost of goods sold for the year under absorption costing? $Answer
d
What was the value of ending inventory under variable costing? $Answer
What was the value of ending inventory under absorption costing? $Answer
e
How much fixed overhead was charged to expense for the year under variable costing? $Answer
How much fixed overhead was charged to expense for the year under absorption costing? $Answer
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