Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. The budgeted monthly production is 2,500 units. The production volume variance is written off to the cost of goods sold account. Other information for the month includes: Variable manufacturing costs Variable marketing costs $20.00 per unit $3.00 per unit $15.00 per unit Fixed manufacturing costs per month $17,500 Administrative expenses, all fixed What is the cost of goods sold using absorption costing? a. $47,250 b. $48,500 c. $60,750 d. $50,750

Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. The budgeted monthly production is 2,500 units. The production volume variance is written off to the cost of goods sold account. Other information for the month includes: Variable manufacturing costs Variable marketing costs $20.00 per unit $3.00 per unit $15.00 per unit Fixed manufacturing costs per month $17,500 Administrative expenses, all fixed What is the cost of goods sold using absorption costing? a. $47,250 b. $48,500 c. $60,750 d. $50,750

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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