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anufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 20 per unit Fixed $ 8,400,000 (per
anufacturing costs | |||
Direct materials | $ | 35 | per unit |
Direct labor | $ | 55 | per unit |
Overhead costs | |||
Variable | $ | 20 | per unit |
Fixed | $ | 8,400,000 | (per year) |
Selling and administrative costs for the year | |||
Variable | $ | 700,000 | |
Fixed | $ | 4,250,000 | |
Production and sales for the year | |||
Units produced | 105,000 | units | |
Units sold | 75,000 | units | |
Sales price per unit | $ | 350 | per unit |
1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.
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