Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $2 per unit, Variable overhead, $4 per unit, and Fixed overhead, $324,000. The company produced 36,000 units, and sold 28,500 units, leaving 7,500 units in inventory at year-end. Income calculated under variable costing is determined to be $400,000. How much income is reported under absorption costing?

Multiple Choice

  • $400,000

  • $332,500

  • $724,000

  • $467,500

  • $381,000

    Urban Company reports the following information regarding its production cost:

    Units produced 35,000 units
    Direct labor $ 28 per unit
    Direct materials $ 33 per unit
    Variable overhead $ 11 per unit
    Fixed overhead $ 125,000 in total

    Compute production cost per unit under variable costing.

    Multiple Choice

  • $33.00

  • $64.57

  • $72.00

  • $28.00

  • $61.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuity Management Audit A Complete Guide

Authors: Gerardus Blokdyk

2019 Edition

0655845860, 978-0655845867

More Books

Students also viewed these Accounting questions

Question

2. Identify the purpose of your speech

Answered: 1 week ago