The following information relates to Drexler Inc.'s Year 3 financials: Direct labor ................................... $420,000 Direct materials ...............................210,000
Question:
The following information relates to Drexler Inc.'s Year 3 financials:
Direct labor ................................... $420,000
Direct materials ...............................210,000
Variable overhead ............................205,000
Fixed overhead ...............................355,000
Variable SG&A expenses ...................150,000
Fixed SG&A expenses ......................195,000
Year 3 period costs for Drexler, under both the absorption and variable cost methods, will be
Absorption Cost Method _______________ Variable Cost Method
a. $345,000 ...........................................$700,000
b. $345,000 ...........................................$905,000
c. $550,000 ........................................... $700,000
d. $550,000 ...........................................$905,000
Step by Step Answer:
Choice a is correct Under the absorption method only variable and fixed ...View the full answer
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
