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Davis Company had a product that costs $7,200 for an output of 90 units. Material cost is $2,700 of this total. Fixed cost amounts to
Davis Company had a product that costs $7,200 for an output of 90 units. Material cost is $2,700 of this total. Fixed cost amounts to $2,250. Marketing expenses are fixed and amount to $1,850. Selling price is $125 per unit and a total of 85 units were sold for the period. The difference in income between absorption costing and variable costing amounts to? A. $250 more under variable costing, and it is due to the fixed costs written off to cost of sales. B. $250 more under absorption costing, and it is due to the fixed costs in inventory C. $125 more under variable costing, and it is due to the additional fixed costs written off to cost of sales. D. $125 more under absorption costing, and it is due to the fixed costs in inventory.Advance Company uses a standard cost and amount for its material usage or $6,400 of materials or3,200 kgs for production 01800 units per day. Advance actually uses $9,450 worth of material 0r3,150 kgs for production of 700 units perday. How many 5 per unit can Advance save if it can source material at its benchmark cost? 0 A. $15.00 0 B. $8.00 0 c. $13.50 0 0. $5.50 Strachan Company had a product that costs $7,200 for an output of 90 units. Material cost is $2,700 of this total. Fixed cost amounts to $2,250. Marketing expenses are fixed and amount to $1,850. Selling price is $125 per unit and a total of 85 units were sold for the period. Income under variable costing amounts to? O A. $1,975 O B. $1,900 O c. $1,725 O D. $1,850The following information relates to a manufacturing rm which allocates overhead costs using Direct Labour as a cost driver. Predetermined overhead rate200 per cent of direct labour cost Direct mate rials inventory, beginning ofthe year 527,500 Direct mate rials inventory, end of the year 515,000 Direct materials purchased during the year $225,000 Work in process inventory, beginning of the year 545,000 Manufactu ring overhead applied during the year $100,000 Work in process inventory, end of the year 570,000 Underapplied manufacturing overhead $10,000 What was the actual manufacturing overhead incurred during the year? 0 A. $10,000 0 B. $87,500 0 c. $110,000 0 0. $10,000 ABC Company's overhead amounts to $300,000 per period based on an output of 200 units of A, 300 units of B, and 500 units of C. Direct labor costs of A, B, and C per unit amount to $75, 50, and 40 respectively. Each unit also requires 7, 12, and 20 machine hours per unit of production. Using machine hours as cost driver, overhead chargeable per unit of A amounts to? O A. $240 O B. $340 O c. $400 O D. $140
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