During the year just ended, Hamilton Industries' income under absorption costing was $4,500 lower than its income under variable costing. The company sold 12,000 units, and its variable costs were $10 per unit, of which $4 was variable selling expense. If production cost per unit under absorption costing is $13 per unit every year, how many units did the company produce during the year?
During the year just ended, Hamilton Industries' income under absorption costing was $4,500 lower than its income under variable costing. The company sold 12,000 units, and its variable costs were $10 per unit, of which $4 was variable selling expense. If production cost per unit under absorption costing is $13 per unit every year, how many units did the company produce during the year?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...
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Transcribed Image Text:During the year just ended, Hamilton Industries' income under
absorption costing was $4,500 lower than its income under variable
costing.
The company sold 12,000 units, and its variable costs were $10 per
unit, of which $4 was variable selling expense.
If production cost per unit under absorption costing is $13 per unit
every year, how many units did the company produce during the
year?
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