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Absorption versus variable costing. Regina Company manufacturers a professional-grade vacuum cleaner and began operations in 2014. For 2014, Regina budgeted to produce and sell 20,000
Absorption versus variable costing. Regina Company manufacturers a professional-grade vacuum cleaner and began operations in 2014. For 2014, Regina budgeted to produce and sell 20,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2014 are given as follows: ome Insert Page Layout Formulas Data 1 Units produced 18.000 2 Units sold 17,500 450 3 Selling price 4 Variable costs: 5 Manufacturing cost per unit produced Direct materials 30 25 Direct manufacturing labor 60 Manufacturing overhead 9 Marketing cost per unit sold 45 10 Fixed costs $1,200,000 11 Manufacturing costs 965.450 12 Administrative costs 13 Marketing 1,366,400
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