Question
How do I analyze the information calculated in the Full Variable Spreadsheet for the Cookie Business ? Productions Costs: Direct material $0.60 Direct labor $1.00
How do I analyze the information calculated in the Full Variable Spreadsheet for the Cookie Business ?
Productions Costs: Direct material $0.60 Direct labor $1.00 Variable manufacturing overhead $0.40 Total variable manufacturing costs per unit $2.00 Fixed manufacturing overhead per year $139,000.00 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $50,000.00 Fixed administrative costs per year $65,000.00 Selling price per cookie $3.75 Number of cookies produced 2,780,000 Number of cookies sold 2,600,000 Full (absorption) costing : Full cost per unit $2.05 variable man cost+ (=2fmanoveperyear/$cookies produced) $139000.00/2780,000 0.05 Ending Inventory Full (absorption) costing $180,000 # cookies prod-#cookies sold Variable costing : Variable cost per unit $2.00 variable manufacturing cost per unit Ending Inventory Variable costing $360,000 ending inventory 180,000*x variable cost per unit
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