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just do Q4 b Q. 4(a): Distinguish between absorption costing and variable costing? Q.4(b): Creative Crates Company produces wooden crates used for shipping products by
just do Q4 b
Q. 4(a): Distinguish between absorption costing and variable costing? Q.4(b): Creative Crates Company produces wooden crates used for shipping products by ocean liner. In 2014, Creative incurred the following costs Wood used in create production Rs. 54,000 Nails (Considered insignificant and variable expense) Direct Labor 38,000 Utilities for the plant Rs. 1,500 each month Plus Rs 0.40 for each kilowatt-hour used each month Rent Expense for the plant for the year Rs. 21,400 Assume Creative used an average 500 kilowatt-hours each month over the past year. 350 Rent expense for the plant for the year RS. 21.00 Assume Creative used an average 500 kilowatt-hours each month over the past year. Required: What is Creative's total manufacturing cost if it uses a variable costing approach? What is Creative's total manufacturing cost if is uses an absorption costing approach? ini. What accounts for the difference in manufacturing costs between these two costing approachStep by Step Solution
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