Number of units produced 2,900 Number of units sold 1,700 Unit sales price $ 790.00 Direct materials per unit 75.00 Direct labor per unit 105.00 Variable manufacturing overhead per unit 55.00 Fixed manufacturing overhead per unit ($346,550 ÷ 2,900 units) 119.50 Total variable selling expenses ($12 per unit sold) 20,400.00 Total fixed general and administrative expenses 90,000.00 How would i complete a full absorption income statement and a contribution margin statement
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
| Number of units produced | 2,900 | |
| Number of units sold | 1,700 | |
| Unit sales price | $ | 790.00 |
| Direct materials per unit | 75.00 | |
| Direct labor per unit | 105.00 | |
| Variable manufacturing overhead per unit | 55.00 | |
| Fixed manufacturing overhead per unit ($346,550 ÷ 2,900 units) | 119.50 | |
| Total variable selling expenses ($12 per unit sold) | 20,400.00 | |
| Total fixed general and administrative expenses | 90,000.00 |
How would i complete a full absorption income statement and a contribution margin statement
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