chapter 19 question 13

Exercise 19-12 Absorption costing and overproduction LO C1 .64 points Jacquie Inc. reports the following annual cost data for its single product. Skipped Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead eBook 63,000 units $ 56.30 per unit $ 9.30 per unit $ 6.80 per unit $ 11.30 per unit $ 812,700 in total Hint Print Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) References Production volume Cost of goods sold: 63,000 units 86,000 units Cost of goods sold per unit Number of units sold Total cost of goods sold Jacquie Inc. Income statement through gross margin Next Cost of goods sold per unit Number of units sold Total cost of goods sold bok nt int Jacquie Inc. Income statement through gross margin ences Sales volume 63,000 units 63,000 units If Jacquie increases its production to 86,000 units, while sales remain at the current 63,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production. Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold