Question
3. Variable and Absorption Costing Follow the directions below and answer the following problem. Maxwell Company manufactures and sells a single product. The following costs
3. Variable and Absorption Costing
Follow the directions below and answer the following problem.
Maxwell Company manufactures and sells a single product. The following costs were incurred during 2014, the companys first year of operations:
Variable Costs per Unit:
Production:
Direct Materials $16
Direct Labor 8
Variable Manufacturing Overhead 2
Selling and Administrative 4
Fixed Costs per Year:
Manufacturing Overhead $ 140,000
Selling and Administrative 110,000
During 2014, the company produced 20,000 units and sold 18,000 units. The selling price of the companys product is $50 per unit.
For Question A for both 1 & 2 answer below:
Compute the Cost to Produce One Unit of Product
1. Absorption Costing 2. Variable Costing
1B. Income Statement Absorption Costing
2B. Income Statement Variable Costing
I have the first 4 questions already answered I just need (Absorption Costing) (Variable Costing) (Income Statement Absorption Costing) (2B Income Statement Variable Costing)
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