Ajax Writing Co. produces pens at a factory designed to produce 20 million pens per year. In 2023, the fixed production overhead related to the factory was $2.4 million, and the factory produced 16 million pens. The inventory cost for each pen related to the fixed production overhead is closest to: a. $0.12 b. $0.15 c. $0.10

Ajax Writing Co. produces pens at a factory designed to produce 20 million pens per year. In 2023, the fixed production overhead related to the factory was $2.4 million, and the factory produced 16 million pens. The inventory cost for each pen related to the fixed production overhead is closest to: a. $0.12 b. $0.15 c. $0.10

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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What is the company's estimated EOQ on these general accounting question?
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,300 each) for 2019. The workstations’ manufacturing costs include the following. Direct materials $ 750 per unit Direct labor $ 400 per unit Variable overhead $ 60 per unit Fixed overhead $ 24,000 per year The selling expenses related to these workstations follow. Variable selling expenses $ 45 per unit Fixed selling expenses $ 3,500 per year Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.Required:1. Complete the following income statements using absorption costing.2. Complete the following income statements using variable costing.
Subject: accounting
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