Question
Western Technologies Inc. produces dashboard displays. Actual fixed manufacturing overhead is the same as the budgeted amount, $687,500. Production in September increased by 10% over
Western Technologies Inc. produces dashboard displays. Actual fixed manufacturing overhead is the same as the budgeted amount, $687,500. Production in September increased by 10% over the previous month's production. August production was 25,000 displays. The production level is the same as the budgeted denominator level. At the end of September, 2,000 displays remained in stock. In August, all of the displays were sold by the end of the month and there was no remaining work in process inventory.
6.What are Western Technologies' appropriate period costs for September if variable costing is used?
a.$668,380
b.$726,500
c.$632,500
d.$687,500
e.$637,500
7.What is the Western Technologies' September cost of goods sold amount if absorption costing is used?
a.$668,380
b.$726,500
c.$632,500
d.$687,500
e.$637,500
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