Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable administrative costs Fixed administrative costs Total Cost Per Unit $6.50 4.00 2.00 2.50 1.50 4.50 $21.00 During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as follows: June's income using absorption costing was $13,300. The income for June, if variable costing had been used, would have been $12,775. The number of ur was Select one: O a. 790 units
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable administrative costs Fixed administrative costs Total Cost Per Unit $6.50 4.00 2.00 2.50 1.50 4.50 $21.00 During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as follows: June's income using absorption costing was $13,300. The income for June, if variable costing had been used, would have been $12,775. The number of ur was Select one: O a. 790 units
Chapter1: Financial Statements And Business Decisions
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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.
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![### Cost per Unit Breakdown
| Cost Per Unit |
|------------------------------------|
| Direct materials | $6.50 |
| Direct labor | $4.00 |
| Variable manufacturing overhead | $2.00 |
| Fixed manufacturing overhead | $2.50 |
| Variable administrative costs | $1.50 |
| Fixed administrative costs | $4.50 |
| **Total** | **$21.00** |
### Scenario Analysis
During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as outlined in the table.
- **June’s income using absorption costing was $13,300.**
- **If variable costing had been used, the income for June would have been $12,775.**
### Question
What was the number of units Carson produced during June?
Select one:
- a. 790 units
- b. 925 units
- c. 1,210 units
- d. 1,075 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be9518c-51b7-4bb1-8036-854b6000ee8b%2F113a0178-2717-418f-90ca-0c1075432293%2Fock6zk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Cost per Unit Breakdown
| Cost Per Unit |
|------------------------------------|
| Direct materials | $6.50 |
| Direct labor | $4.00 |
| Variable manufacturing overhead | $2.00 |
| Fixed manufacturing overhead | $2.50 |
| Variable administrative costs | $1.50 |
| Fixed administrative costs | $4.50 |
| **Total** | **$21.00** |
### Scenario Analysis
During the month of June, Carson Corporation sold 1,000 units. The cost per unit for June was as outlined in the table.
- **June’s income using absorption costing was $13,300.**
- **If variable costing had been used, the income for June would have been $12,775.**
### Question
What was the number of units Carson produced during June?
Select one:
- a. 790 units
- b. 925 units
- c. 1,210 units
- d. 1,075 units
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