Question: Wool Creations Inc. manufactures wool sweaters. Costs incurred in making 9,200 sweaters in October included $35,420 of fixed manufacturing overhead. The total absorption cost per

 Wool Creations Inc. manufactures wool sweaters. Costs incurred in making 9,200sweaters in October included $35,420 of fixed manufacturing overhead. The total absorption

cost per sweater was $11.05. Required: a. Calculate the variable cost per
sweater. (Round Intermediate calculations and final answer to 2 decimal places.) Wanable

Wool Creations Inc. manufactures wool sweaters. Costs incurred in making 9,200 sweaters in October included $35,420 of fixed manufacturing overhead. The total absorption cost per sweater was $11.05. Required: a. Calculate the variable cost per sweater. (Round Intermediate calculations and final answer to 2 decimal places.) Wanable cost per sweater b. The ending inventory of sweaters was 1.400 units lower at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would cost of goods sold for the month of October be different under variable costing than under absorption costing? (Round Intermediate calculations to 2 decimal places.) Costood ou unde variables con will be c. Express the sweater cost in a cost formula (Round your intermediate calculations and "Variable cost" to 2 decimal places.) TO CON

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!