Ramort Company reports the following for its single product. Ramort produced and sold 23,600 units this...

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Ramort Company reports the following for its single product. Ramort produced and sold 23,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 28 per unit $ 30 per unit $ 21 per unit $47,200 per year $2 per unit $ 68,800 per year $ 114 per unit QS 19-10 (Algo) Absorption costing and overproduction LO C1 Ramort doubles its production from 23,600 to 47,200 units while sales remain at the current 23,600 unit level. (a) Compute gross profit when production is 47,200 units under absorption costing. (b) What is the change in gross profit by increasing production from 23,600 units to 47,200 units under absorption costing? Ramort Company reports the following for its single product. Ramort produced and sold 23,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 28 per unit $ 30 per unit $ 21 per unit $47,200 per year $2 per unit $ 68,800 per year $ 114 per unit QS 19-10 (Algo) Absorption costing and overproduction LO C1 Ramort doubles its production from 23,600 to 47,200 units while sales remain at the current 23,600 unit level. (a) Compute gross profit when production is 47,200 units under absorption costing. (b) What is the change in gross profit by increasing production from 23,600 units to 47,200 units under absorption costing?

Answer rating: 100% (QA)

To compute the gross profit when production is 47200 units under absorption costing we need to calcu... View the full answer