Direct labor 18 per unit Direct materials 12 per unit Overhead Total variable overhead 31,000 Total fixed overhead 101,000 Expected units to be produced 51,000 units %24 %24
Direct labor 18 per unit Direct materials 12 per unit Overhead Total variable overhead 31,000 Total fixed overhead 101,000 Expected units to be produced 51,000 units %24 %24
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
![Product cost under absorption costing
Direct labor
18 per unit
Direct materials
12 per unit
Overhead
Total variable overhead
31,000
Total fixed overhead
101,000
Expected units to be produced
51,000 units
Multiple Choice
S30.00 per unit
S30.61 per unit
S31.98 per unit
S32.59 per unit
S33.00 per unit
%24
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40e15188-f141-4ffd-a399-b13163cdeeaf%2F12a4ebfb-74eb-4910-b047-8588ded13867%2F0kbi9sm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Product cost under absorption costing
Direct labor
18 per unit
Direct materials
12 per unit
Overhead
Total variable overhead
31,000
Total fixed overhead
101,000
Expected units to be produced
51,000 units
Multiple Choice
S30.00 per unit
S30.61 per unit
S31.98 per unit
S32.59 per unit
S33.00 per unit
%24
%24
%24
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