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Direct materials $150
Direct labor $75
Variable manufacturing overhead $25
Variable selling and admin $15
Fixed costs:
Fixed manufacturing overhead $275,000
Fixed selling and admin $200,000
Required:
Compute the cost of a single unit of product under both the absorption
costing and variable costing approaches.
Prepare an income statement for the year using absorption costing.
Prepare an income statement for the year using variable costing. (Points :
30)Extra questions
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ACCT 505 Midterm Exam (New) Set 2
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Multiple Choice 10 9
Essay 4
Question 1. Question : (TCO A) The variable portion of advertising
costs is a
Student Answer: Conversion YES... Period NO.
Conversion YES .... Period YES.
Conversion NO.... Period NO.
Conversion NO.... Period YES.
Question 2. Question : (TCO A) A cost incurred in the past that is not
relevant to any current decision is classified as a(n)