Question
donovan company incurred the following costs while producing 2000 units: Direct Materials, $15 per unit; variable manufacturing overhead, $12 per unit; variable selling and administrative
donovan company incurred the following costs while producing 2000 units: Direct Materials, $15 per unit; variable manufacturing overhead, $12 per unit; variable selling and administrative costs, $14, per unit; total fixed overhead costs, $20,000; total fixed selling and administrative costs, $10,000. There are no beginning inventories.
What is the unit productive cost using absorption costing?
What is the unit product cost using variable costing?
What is the operating income using absorption costing if 1800 units are sold for $100 each?
What is the operating income using variable costing if 1900 units are sold for $100 each?
*Formulas or explanations with each part of the problem.
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