Question
Managerial Accounting: Q No.# 2. The following data were taken from the records of a company. Period 1 Period 2 Period 3 Production(units) 30,000 38000
Managerial Accounting:
Q No.# 2. The following data were taken from the records of a company.
Period 1 Period 2 Period 3
Production(units) 30,000 38000 27000
Sales 30,000 27000 38000
Opening stock 11,000
Closing stock ------ 11,000 -------
Per unit cost are as follows:
Direct material $ 1.5
Direct labor 1.0
Production overhead 3.0
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 units information related to the current year activities follows
Variable cost per unit
Direct material 40
Direct labor 74
Manufacturing overhead 96
Annual fixed cost
Manufacturing cost 1,200,000
Selling and administrative 1,720,000
Sales and production
Sales in units 20,000
Production 24,000
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?
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