Selected data for Babar Ltd of past year of operations are presented below:

Product X

Production [ in units ]

4750

Sales [ in units ]

2800

Selling price

$15.00

General activity [DL Hours]

5080

General activity [Machine hours]

1800

DLH RATE

$21.00

Manufacturing cost

Raw Materials [$]

3400

Direct Labour Hours

140

Manufacturing Overhead

Variable overhead

$2350

Fixed overhead

$5600

Non manufacturing cost

Variable selling

$2618

Fixed selling cost

$3560

Estimated total fixed cost for the company = $54,000. Company uses direct labour hours to assign cost in its absorption method of allocating cost to manufacturing overhead.

REQUIRED

1. Calculate product cost of product X using variable cost .

2. Calculate product cost of product X using absorption cost ..

3. Calculate variable cost of goods for the year

4. Find the variable-costing net income

5. Calculate cost of goods for the year using absorption method

6. Find the net income using absorption method

Answer rating: 100% (QA)

1 Product Cost of Product X using variable cost Variable Manufacturing Cost Raw Materials 3400 Varia... View the full answer