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Variable and Absorption Costing (14 points) - Porta Light manufactures a high-quality LED light for home/office use. Data pertaining to the companys operations for the
- Variable and Absorption Costing (14 points) - Porta Light manufactures a high-quality LED light for home/office use. Data pertaining to the companys operations for the year are as follows:
Data | Number |
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Production for year | 50,000 | units |
Budget for the year | 45,000 | units |
Sales for the year | 48,750 | Units |
Costs to produce one unit |
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Direct Materials | $3.60 | Per unit |
Direct Labor | 1.00 | Per unit |
Variable overhead | .60 | Per unit |
Fixed overhead | 22,500 | Per year |
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Selling and Administrative expenses |
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Variable | .40 | Per unit |
Fixed | $150,000 | Per year |
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Selling Price | $10 | Per unit |
The company uses standard costing and there are no price, efficiency, or spending variances.
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Thanks!
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