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ABC Manufacturing has the following cost structure: Direct material (DM) per unit (DM/u) $4 Direct Labor (DL) per unit (DM/u $6 Variable manufacturing overhead (VMO)
ABC Manufacturing has the following cost structure: | |
Direct material (DM) per unit (DM/u) | $4 |
Direct Labor (DL) per unit (DM/u | $6 |
Variable manufacturing overhead (VMO) per unit (VMO/u) | $2 |
Fixed manufacturing overhead per year | $10,000 |
Fixed selling and administrative expenses | $20,000 |
Assume | |
units produced | 10,000 |
units sold | 8,000 |
Using variable costing, find variable costs for ending inventory |
$20,000 | ||
$24,000 | ||
$26,000 | ||
between $32,000 and $35,000 |
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