Gameplay manufactures video games that it sells for $44 each. The company uses a fixed manufacturing overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as planned. The following data are from Game PlayGame Play's first two months in business during October Sales 1,000 units Production 2,500 units Variable Manufacturing cost per game $12 Sales commission cost per game $3 Total fixed manufacturing overhead $10,000 Total fixed selling and administrative cost $7500 November Sales 2,800 Production 2,500 Variable Manufacturing cost per game $12 Sales commission cost per game $3 Total fixed manufacturing overhead $10,000 Total fixed selling and administrative cost $7500 Compute the product cost per game produced under absorption costing and under variable costing. October 2018 Total cost product per game: Absorpsion costing= Variable costing=
Gameplay manufactures video games that it sells for $44 each. The company uses a fixed manufacturing overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as planned. The following data are from Game PlayGame Play's first two months in business during October Sales 1,000 units Production 2,500 units Variable Manufacturing cost per game $12 Sales commission cost per game $3 Total fixed manufacturing overhead $10,000 Total fixed selling and administrative cost $7500 November Sales 2,800 Production 2,500 Variable Manufacturing cost per game $12 Sales commission cost per game $3 Total fixed manufacturing overhead $10,000 Total fixed selling and administrative cost $7500 Compute the product cost per game produced under absorption costing and under variable costing. October 2018 Total cost product per game: Absorpsion costing= Variable costing=
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gameplay manufactures video games that it sells for $44 each. The company uses a fixed manufacturing
October
Sales 1,000 units
Production 2,500 units
Variable Manufacturing cost per game $12
Sales commission cost per game $3
Total fixed manufacturing overhead $10,000
Total fixed selling and administrative cost $7500
November
Sales 2,800
Production 2,500
Variable Manufacturing cost per game $12
Sales commission cost per game $3
Total fixed manufacturing overhead $10,000
Total fixed selling and administrative cost $7500
Compute the product cost per game produced under absorption costing and under variable costing.
October 2018
Total cost product per game:
Absorpsion costing=
Variable costing=
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