Business, 05.05.2020 05:37 viktoria1198zz
Buttons Company produces three products: LMC, DMC, KPC. For the coming year they expect to produce 160,000 units. Of these, 65,000 will be LMC, 40,000 will be DMC and 55,000 will be KPC. The following information was provided for the coming year:
LMC DMC KPC
Price $550 $860 $625
Unit direct materials 250 405 300
Unit direct labor 180 210 205
Unit variable overhead 60 72 55
Unit variable selling expense 45 60 58
Total direct fixed overhead 240,000 425,000 400,000
Common fixed overhead is $984,000 and fixed selling and administrative expenses for Buttons Company is $881,000 per year.
Required:
A. Calculate the unit variable cost under variable costing
B. Calculate the unit variable product cost.
C. Prepare a segmented variable-costing income statement for next year.
Answers: 3
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Buttons Company produces three products: LMC, DMC, KPC. For the coming year they expect to produce 1...
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