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28 Sep 2019
Aspen Manufacturing Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $5.00 per unit produced Direct manufacturing labor $11.00 per unit produced Variable manufacturing costs $6.00 per unit produced Total fixed manufacturing costs $180,000 Marketing expenses $3.00 per unit sold, plus $100,000 per year
Required:
a. What is income under variable costing â show computations?
b. Is income greater than or less than if using absorption costing and by what dollar amount â show computations?
Aspen Manufacturing Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $5.00 per unit produced Direct manufacturing labor $11.00 per unit produced Variable manufacturing costs $6.00 per unit produced Total fixed manufacturing costs $180,000 Marketing expenses $3.00 per unit sold, plus $100,000 per year
Required:
a. What is income under variable costing â show computations?
b. Is income greater than or less than if using absorption costing and by what dollar amount â show computations?
Collen VonLv2
28 Sep 2019