Last year, Lincoln's income under absorption costing was $3,200 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of which $3 was for variable selling expenses. If production cost was $12 per unit under absorption costing, then how many units did the company produce during the year?
Last year, Lincoln's income under absorption costing was $3,200 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of which $3 was for variable selling expenses. If production cost was $12 per unit under absorption costing, then 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:Last year, Lincoln's income under absorption costing was
$3,200 lower than its income under variable costing. The
company sold 9,000 units during the year, and its variable
costs were $10 per unit, of which $3 was for variable
selling expenses. If production cost was $12 per unit
under absorption costing, then how many units did the
company produce during the year?
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