Ollie's Olive Oil began business in 2013, during which 104,000 quarts of olive oil were produced. In 2013, the company sold 100,000 quarts of olive oil. Costs incurred during the year were as follows: Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses $228,800 104,000 197,600 98,800 50,000 Fixed selling and administrative expenses 20,000 Total actual costs $799,200 a. What was the actual production cost per quart under variable costing? Under absorption costing? b. What was the variable cost of goods sold for 2013 under variable costing?

Ollie's Olive Oil began business in 2013, during which 104,000 quarts of olive oil were produced. In 2013, the company sold 100,000 quarts of olive oil. Costs incurred during the year were as follows: Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses $228,800 104,000 197,600 98,800 50,000 Fixed selling and administrative expenses 20,000 Total actual costs $799,200 a. What was the actual production cost per quart under variable costing? Under absorption costing? b. What was the variable cost of goods sold for 2013 under variable costing?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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