Question
Brooks Company - Total absorption costing (not done in class) The Brooks company manufactures furniture including tables. Assignment: You have been provided with the information
Brooks Company - Total absorption costing (not done in class) The Brooks company manufactures furniture including tables. Assignment: You have been provided with the information below for the table production line. Prepare a profit analysis using total absorption costing methodology assuming sales units are 9 000 & production is 12 000 (this is the first year of activity). Starting inventory Nil Wood 35 per unit Other materials 2 per unit Material handling 20 000 estimated costs per year Direct labor 20 per unit Line supervisor 40 000 estimated costs per year Line equipment depreciation 30 000 estimated costs per year Share of factory rent 50 000 estimated costs per year Shipping costs 8 per unit Sales commissions 5 per unit Share of General & administrative expenses 60 000 estimated costs per year Share of Marketing & sales expenses 50 000 estimated costs per year Sales price 110 per unit
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