Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
can I get someone to work this out so I can check my work. PB5-6 Comparing Full Absorption and Variable Costing@L0 55-1 Herb Garden manufactures
can I get someone to work this out so I can check my work. PB5-6 Comparing Full Absorption and Variable Costing@L0 55-1 Herb Garden manufactures garden planters for growing fresh herbs to use in cooking. Individuals as well as local restaurants purchase the planters. Recently, the company incurred the following costs: Page 254 Variable Cost per Planter Direct materials Direct labor 240 Variable manufacturing overhead Variable selling and administrative expenses 0.65 Fixed Cost per Month Fixed manufacturing overhead $12,025 Fixed selling and administrative expenses 8.640 Herb Garden charges S17 for each planter that it sells. During the first month of operation, it made 6,500 planters and sold 6.225 Required: 1. Assuming Herb Garden uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Prepare a variable costing income statement for the last month. 3. Assuming Herb Garden uses full absorption costing. calculate the full manufacturing cost per unit for the last month. 4. Prepare a full absorption costing income statement. 5. Compare the two income statements and explain any differences. 6. Suppose next month Herb Garden expects to produce 6.500 planters and sell 6,700 of them. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Why
can I get someone to work this out so I can check my work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started