Question
Case 6-29 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] [The following information applies to the questions displayed below.] OBrien Company
Case 6-29 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2]
[The following information applies to the questions displayed below.] |
OBrien Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations: |
Variable costs per unit: | ||
Manufacturing: | ||
Direct materials | $30 | |
Direct labor | $18 | |
Variable manufacturing overhead | $5 | |
Variable selling and administrative | $2 | |
Fixed costs per year: | ||
Fixed manufacturing overhead | $560,000 | |
Fixed selling and administrative expenses | $110,000 | |
During its first year of operations, OBrien produced 100,000 units and sold 74,000 units. During its second year of operations, it produced 79,000 units and sold 100,000 units. In its third year, OBrien produced 82,000 units and sold 77,000 units. The selling price of the companys product is $72 per unit.
Case 6-29 Part-1
Case 6-29 Part-2
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