Henry rollers produces industry used rollers. Last year, the company produced 21 000 unitsand sold all but only 2 000 units left. The rollers sell for $200 each. Costs incurred are listedhere.Material purchased$ 500 000Materials used$ 400 000Other variable manufacturing costs$ 600 000Fixed manufacturing costs$ 88 000Variable selling costs$ 180 000Fixed selling and administrative costs$ 900 000Beginning inventory last year held 2 000 rollers. The normal capacity is 29 000 units.Compute the volume variance to be adjusted/ deducted from cost of goods sold underabsorption costing.Answer22°C Rain

Variance is the difference between estimated or budgeted cost of production and actual cost of…

Answered: Beginning inventory last year held 2…

Beginning inventory last year held 2 000 rollers. The normal capacity is 29 000 units. Compute the volume variance to be adjusted/ deducted from cost of goods sold under absorption costing.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

Henry rollers produces industry used rollers. Last year, the company produced 21 000 units
and sold all but only 2 000 units left. The rollers sell for $200 each. Costs incurred are listed
here.
Material purchased
$ 500 000
Materials used
$ 400 000
Other variable manufacturing costs
$ 600 000
Fixed manufacturing costs
$ 88 000
Variable selling costs
$ 180 000
Fixed selling and administrative costs
$ 900 000
Beginning inventory last year held 2 000 rollers. The normal capacity is 29 000 units.
Compute the volume variance to be adjusted/ deducted from cost of goods sold under
absorption costing.
Answer
22°C Rain

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