Number of units produced 3,000 Number of units sold 2,500 Unit sales price $ 350 Direct materials per unit 80 Direct labor per unit 60 Variable manufacturing overhead per unit 10 Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units) 75 Total variable selling expenses ($15 per unit sold) 37,500 Total fixed general and administrative expenses 65,000 Im confused on how i would make a full absorption income statement with the information above.
Number of units produced 3,000 Number of units sold 2,500 Unit sales price $ 350 Direct materials per unit 80 Direct labor per unit 60 Variable manufacturing overhead per unit 10 Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units) 75 Total variable selling expenses ($15 per unit sold) 37,500 Total fixed general and administrative expenses 65,000 Im confused on how i would make a full absorption income statement with the information above.
Number of units produced 3,000 Number of units sold 2,500 Unit sales price $ 350 Direct materials per unit 80 Direct labor per unit 60 Variable manufacturing overhead per unit 10 Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units) 75 Total variable selling expenses ($15 per unit sold) 37,500 Total fixed general and administrative expenses 65,000 Im confused on how i would make a full absorption income statement with the information above.
Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units)
75
Total variable selling expenses ($15 per unit sold)
37,500
Total fixed general and administrative expenses
65,000
Im confused on how i would make a full absorption income statement with the information above.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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