Question
hey, need some help with my according homework E8-25: p. 371Exercise 8-25 Income Statements under Absorption and Variable Costing In the coming year, Kalling Company
hey, need some help with my according homework
E8-25: p. 371Exercise 8-25 Income Statements under Absorption and Variable Costing
In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kallings controller provided the following information for the coming year.
Units production | 30,000 |
Unit direct materials | $9.95 |
Unit direct labor | $2.75 |
Unit variable overhead | $1.65 |
Unit fixed overhead* | $2.50 |
Unit selling expense (variable) | $2.00 |
Total fixed selling expense | $65,500 |
Total fixed administrative expense | $231,000 |
*
The unit fixed overhead is based on 30,000 units produced.
Required:
- 1.Calculate the cost of one unit of product under absorption costing.
- 2.Calculate the cost of one unit of product under variable costing.
- 3.Calculate operating income under absorption costing for next year.
- 4.Calculate operating income under variable costing for next year.
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