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Business, 16.10.2020 14:01 katswindle11
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $722. Selected data for the company’s operations last year follow:
Units in beginning inventory 0
Units produced 23,000
Units sold 20,000
Units in ending inventory 3,000
Variable costs per unit:
Direct materials $180
Direct labor $340
Variable manufacturing overhead $51
Variable selling and administrative $18
Fixed costs:
Fixed manufacturing overhead $940,000
Fixed selling and administrative $820,000
Required:
a. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
b. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophon...
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