Question
Henry rollers produces industry used rollers. Last year, the company produced 19 000 units and sold all but only 4 000 units left. The
Henry rollers produces industry used rollers. Last year, the company produced 19 000 units and sold all but only 4 000 units left. The rollers sell for $238 each. Costs incurred are listed here. Material purchased Materials used Other variable manufacturing costs $ 500 000 $ 400 000 $ 600 000 $ 160 000 $ 180 000 Fixed selling and administrative costs $ 900 000 Fixed manufacturing costs Variable selling costs Beginning inventory last year held 4 000 rollers. The normal capacity is 28 000 units. Compute the volume variance to be adjusted/ deducted from cost of goods sold under absorption costing.
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