Exercise - ABC Inc. provided the following information: Cost per Period Unit Cost $ 5.00 $3.00 $1.50 Direct materials: Direct labor Variable MFG OH Fixed MFG OH Sales Commissions Variable Admin. Exp Fixed Selling & Admin. Exp. $4,000 Exam: If 3,000 units are produced, what is total MOH cost? $0.50 $10,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise - ABC Inc. provided the following information:
Cost per Period
Unit Cost
$ 5.00
Direct materials:
Direct labor
Variable MFG OH
Fixed MFG OH
Sales Commissions
Variable Admin. Exp
Fixed Selling & Admin. Exp.
$4,000
Exam: If 3,000 units are produced, what is total MOH cost?
=
$3.00
$1.50
$0.50
$10,000
Strategy:
1. MOH MFG OH = Indirect Materials + Indirect Labor + other Indirect MFG costs
Another MFG OH formula = Fixed MFG OH. + Variable MFG OH
Transcribed Image Text:Exercise - ABC Inc. provided the following information: Cost per Period Unit Cost $ 5.00 Direct materials: Direct labor Variable MFG OH Fixed MFG OH Sales Commissions Variable Admin. Exp Fixed Selling & Admin. Exp. $4,000 Exam: If 3,000 units are produced, what is total MOH cost? = $3.00 $1.50 $0.50 $10,000 Strategy: 1. MOH MFG OH = Indirect Materials + Indirect Labor + other Indirect MFG costs Another MFG OH formula = Fixed MFG OH. + Variable MFG OH
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