Managerial Accounting:

Q No.# 2. The following data were taken from the records of a company.

Period 1Period 2Period 3

Production(units)30,0003800027000

Sales30,0002700038000

Opening stock11,000

Closing stock------11,000-------

Per unit cost are as follows:

Direct material$ 1.5

Direct labor1.0

Production overhead3.0

Selling price per unit$ 9

Administrative overheads are fixed at $25000 and one third of the production overheads are fixed.

Required

Prepare separate income statements on full costing and variable costing

Q#3.HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 370 per unit's information related to the current year activities follows

Variable cost per unit

Direct material40

Direct labor74

Manufacturing overhead96

Annual fixed cost

Manufacturing cost1,200,000

Selling and administrative1,720,000

Sales and production

Sales in units20,000

Production24,000

Required -

Cost of the December 31 finished goods inventory

Net income for the current year Dec 31

If next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on

• The direct labor cost of 74 per units? why?
• The fixed manufacturing overhead of 1,200,000? why?
• The fixed selling and administrative cost of1,7200,000? why?
• Per unit cost production why?