QUESTION 2

HASF Corporation began operations at the beginning of the current year. one of the year company product a compressor sells for 350 per units information related to the current year activities follows

Variable cost per unit

Direct material 55

Direct labor 84

Manufacturing overhead 76

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 -( 01 marks each )

Cost of the December 31 finished goods inventory 1,060,000

Value of sales 7,000,000

Value of cost of sales 5,940,000

Gross profit 1,060,000

Net income -660,000

labor cost per unit if company produce 22,500 unit ( cost behavior patterns not change )

cost of fixed manufactuirng over head if company produce 22,500 unit ( cost behavior patterns not change )

cost of fixed selling and administartive exp if company produce 22,500 unit ( cost behavior patterns not change )

per unit cost of porducation if company produce 22,500 units

Per unit gross profit if selling price will not change