Max Company had the following operating data for its April 2021 operations Variable costs per unit: Direct materials Direct labor Variable overhead P 8.00 4.00 1.50 Fixed costs per year: Overhead 90,000 Selling and administrative 23,450 Max produced 30,000 units for the month and sold 25,000. The selling price per unit was P21. Max uses an actual costing system for product costing. Required: a. Prepare income statements using absorption and variable costing.
Max Company had the following operating data for its April 2021 operations Variable costs per unit: Direct materials Direct labor Variable overhead P 8.00 4.00 1.50 Fixed costs per year: Overhead 90,000 Selling and administrative 23,450 Max produced 30,000 units for the month and sold 25,000. The selling price per unit was P21. Max uses an actual costing system for product costing. Required: a. Prepare income statements using absorption and variable costing.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 6E: On October 31, the end of the first month of operations, Maryville Equipment Company prepared the...
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![Max Company had the following operating data for its April 2021 operations
Variable costs per unit:
Direct materials
P 8.00
Direct labor
4.00
Variable overhead
1.50
Fixed costs per year:
Overhead
90,000
Selling and administrative 23,450
Max produced 30,000 units for the month and sold 25,000. The selling price per
unit was P21. Max uses an actual costing system for product costing.
Required:
a. Prepare income statements using absorption and variable costing.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11fec685-fcea-4600-8ed3-faf4b61ef4ff%2F5bba082b-3022-49a7-80ce-4c3997ded0bc%2Fa1ofpp8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Max Company had the following operating data for its April 2021 operations
Variable costs per unit:
Direct materials
P 8.00
Direct labor
4.00
Variable overhead
1.50
Fixed costs per year:
Overhead
90,000
Selling and administrative 23,450
Max produced 30,000 units for the month and sold 25,000. The selling price per
unit was P21. Max uses an actual costing system for product costing.
Required:
a. Prepare income statements using absorption and variable costing.
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