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Please help me to solve this exercise EXERCISE 2 Parbleu Corporation, which operates in France at full capacity, produces two different p and W. In
Please help me to solve this exercise
EXERCISE 2 Parbleu Corporation, which operates in France at full capacity, produces two different p and "W". In its cost accoun basis of direct labor-hours worked at full capacity, produces two different products: "" ting system manufacturing overhead costs are applied to products on the Basics information relating to the company's two productsis shown below Product"VV" 4,500 $200 Units sold: Average selling price: Units produced: Direct materials (per unit): Direct labors (per unit): Machine hours (per unit) Sales commission Product"Z 8,000 $250 7,000 $60.00 5 hours 3 hours 5% 5,000 $50.00 2,5 hours 6 hours 4% The company has provided the following financial data concerning its actual operations for the year ended: Direct materials purchased Direct labor Manufacturing Fixed Overhead Manufacturing Variable Overhead Sales General& Administrative Costs (fixed) Interest Revenues $ 695,000 $ 593,750 $608.000 S 35,625 530,000 $24,700 The initial inventory for Direct material at the beginning of the year was $ 80,000. Final inventory is $105,000. You are required: a) b) to determine the cost of the two products per unit using absorption costing to provide a segmented income statement in which contribution margin and EBIT for the company are shown Step by Step Solution
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