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(c) Compute the current margin of safety.
(d) How many applications must the company sell to make a profit of
$350,000?
Points Received:
25 of 25
3.Question :
(TCO 5) The following data has been taken from Air-Tite company in
its first year of business.
Units produced 100,000
Units sold 80,000
Units in ending inventory 20,000
Fixed manufacturing overhead $400,000
(a) Compute the amount of fixed manufacturing overhead that would be
expensed in the current year if full absorption costing is used.
(b) Compute the amount of fixed manufacturing overhead that would be
expensed in the current year if variable costing is used.
(c) Compute the amount of fixed manufacturing overhead that would be
included in ending inventory under full absorption costing.
Points Received:
25 of 25