Question
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $955. Selected data for the companys operations last year follow:
Units in beginning inventory | 0 | ||||||||||||||||||||
Units produced | 25,000 | ||||||||||||||||||||
Units sold | 21,000 | ||||||||||||||||||||
Units in ending inventory | 4,000 | ||||||||||||||||||||
Variable costs per unit: | |||||||||||||||||||||
Direct materials | $ 240 | ||||||||||||||||||||
Direct labor | $ 480 | ||||||||||||||||||||
Variable manufacturing overhead | $ 65 | ||||||||||||||||||||
Variable selling and administrative | $ 24 | ||||||||||||||||||||
Fixed costs: | |||||||||||||||||||||
Fixed manufacturing overhead | $ 750,000 | ||||||||||||||||||||
Fixed selling and administrative | $ 640,000 | ||||||||||||||||||||
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