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2. Chatagua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $50. The variable costs of production for
2. Chatagua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $50. The variable costs of production for one case of cans are as follows: Direct material....$15 Variable manufacturing overhead.12 Total variable manufacturing cost per case. ...$32 Variable selling and administrative costs amount to $1 per case. Budgeted fixed manufacturing overhead is $800,000 per year, and fixed selling and administrative cost is $75,000 per year. The following data pertain to the company's first three years of operation Year 1 Year 2 Year 3 Planned production (in units..80,000 80,000 80,000 Finished-goods inventory (in units), January 1 Actual production (n units).. .80,000 80,000 80,000 Sales (in units) Finished-goods inventory (in units), December 31 0 20,000 10,000 Actual costs were the same as the budgeted costs. 0 20,000 2. Chatagua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $50. The variable costs of production for one case of cans are as follows: Direct material....$15 Variable manufacturing overhead.12 Total variable manufacturing cost per case. ...$32 Variable selling and administrative costs amount to $1 per case. Budgeted fixed manufacturing overhead is $800,000 per year, and fixed selling and administrative cost is $75,000 per year. The following data pertain to the company's first three years of operation Year 1 Year 2 Year 3 Planned production (in units..80,000 80,000 80,000 Finished-goods inventory (in units), January 1 Actual production (n units).. .80,000 80,000 80,000 Sales (in units) Finished-goods inventory (in units), December 31 0 20,000 10,000 Actual costs were the same as the budgeted costs. 0 20,000
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