Zullo Company has a maximum productive capacity of 180,000 units per year. Standard variable manufacturing costs are
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Zullo Company has a maximum productive capacity of 180,000 units per year. Standard variable manufacturing costs are $11 per unit. Fixed factory overhead is $360,000 per year. Variable selling expenses are $3 per unit sold, and fixed selling expenses are $252,000 per year. The unit sales price is $20. mki4
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The operating results for 19X9 are Sales Production Beginning inventory.. 150,000 units 160,000 units 10,000 units Net unfavorable variance for standard variable manufacturing cost is $40,000. All variances are written off as additions to (or deductions from) standard cost of sales. Required: a Prepare a formal statement of earnings for 19X9 under 1 Conventional (absorption) costing 2 Direct costing b Briefly account for the difference in net carnings between the two statements of earnings. (AICPA Adapted.)
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Related Book For
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg
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