Case 1 Gargamon Co. is a company engaged in the manufacture of leather shoes. Below are company data for 2 years:

Selling Price per unit			$ 120
Manufacturing Cost
	Variable cost:
		Direct Materials			$ 40
		Direct Labor			$ 5
		Variable Overhead			$ 10
	Fixed per Year			$ 250,000
Selling and administrative cost
Variable per unit sold			$ 10
Fixed per year				$ 100,000
					Year 1	Year 2
Units in beginning inventory	-	1,000
Units produced during the year	10,000	8,000
Units sold during the year	9,000	9,000
Units in ending inventory		1,000	-

(?)1 If the firm uses absorption costing, determine: a. Unit Product Cost each year b. Income Statement every year 2 If the company uses variable costing, determine: a. Unit Product Cost each year b. Income Statement every year 3 Reconciliation of absorption profit and variable costing

Case 2 Local laptop manufacturers, are trying to compare between their 2 best selling laptop series. The data obtained are as follows:

			234 YS	Maharani
Price			3,500,000	3,000,000
Unit Penjualan		500	700
Variable Cost		1,500,000	2,000,000
Fixed Manufacturing Overhead	500,000,000	150,000,000
Fixed Selling and Adm perusahaan total	400,000,000

(?) Variable Costing Income Statement format that is organized by product line segment

Case 3 :

Macro Corporation makes a single product - fireproof document cabinets - that it sells to office supply distributors. The company uses a simple ABC system that is used for internal decision making. The company has an overhead department with the following total costs:

Factory overhead : $500,000 Sales and administration overhead : $300,000 Total overhead cost: $800,000

The company's ABC system has an activity cost pool and activity measure:

- Activity cost pool : Assembly unit, Order processing, Customer service, Others

- Activity measure : Number of units, Order quantity, Number of customers, N/A

The costs assigned to the 'other' activity cost pool do not have an activity measure; it consists of idle capacity costs and organizational maintenance costs. These costs are not allocated to products, orders, and customers. Macro Corp distributes manufacturing overhead and sales and administrative overhead into activity cost pools based on employee interviews. The results are as follows:

Distribution of Resource Consumption among various activities
	Volume	Order	Service	Others	Total
Factory overhead	50%	35%	5%	10%	100%
Sales and administrative overhead	10%	45%	25%	20%	100%
Total activity	1.000 unit	250 orders	100 customers

(?) 1. Make a first-stage allocation of overhead costs into the activity cost pool 2. Calculate the activity rate for the activity cost pool 3. MyMart is one of the company's customers. last year MyMart ordered 4 times and ordered 80 cabinet units during that year. Make a table showing the overhead costs for 80 units for an order of 4 times. 4. The selling price for the document cabinet is $600. The direct materials cost per unit is $180, the direct labor cost is $51 per unit. What is the product margin for the 80 units of document cabinets ordered by MyMart? How much does MyMart benefit the company as a customer? (In percent %)