Question
Jasper Enterprises had the following cost and production information for April: Units Produced 20,000 Units Sold 16,000 Unit Sales Price $ 210 Manufacturing Cost Per
Jasper Enterprises had the following cost and production information for April:
| Units Produced | 20,000 | |||
| Units Sold | 16,000 | |||
| Unit Sales Price | $ | 210 | ||
| Manufacturing Cost Per Unit | ||||
| Direct Material | $ | 20 | ||
| Direct Labor | $ | 35 | ||
| Variable Manufacturing Overhead | $ | 16 | ||
| Fixed Manufacturing Overhead | ($460,000/20,000) | = | $ | 23 |
| Full Manufacturing Cost Per Unit | $ | 94 | ||
| Nonmanufacturing Costs | ||||
| Variable Selling Expenses | $ | 106,000 | ||
| Fixed General and Administrative Costs | $ | 67,000 | ||
How much greater will Jasper Enterprises' income be under absorption costing than under variable costing?
Multiple Choice
-
$388,800
-
$92,000
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$460,000
-
$368,000
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Management Accounting Text Problems And Cases
Authors: M. Y. Khan, P K Jain
7th Edition
9352606787, 978-9352606788
