Sales per unit $15.00 Variable production cost 8.00 Annual fixed production cost 35,000.00 Variable selling expense (unit) 3.00 Annual fixed selling expense 15,000.00 Produced 12,500 units during the period No inventory at January 1 (beg.) Sold 10,000 units Total variable annual cost charged to expense in direct costing a. $110,000 b. $117,500 c. $80,000 d. $100,000 6. Total fixed cost charged against current year’s operations in absorption costing a. P35,000 b. $25,000 c. $15,000 d. $43,000
Sales per unit $15.00 Variable production cost 8.00 Annual fixed production cost 35,000.00 Variable selling expense (unit) 3.00 Annual fixed selling expense 15,000.00 Produced 12,500 units during the period No inventory at January 1 (beg.) Sold 10,000 units Total variable annual cost charged to expense in direct costing a. $110,000 b. $117,500 c. $80,000 d. $100,000 6. Total fixed cost charged against current year’s operations in absorption costing a. P35,000 b. $25,000 c. $15,000 d. $43,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sales per unit $15.00
Variable production cost 8.00
Annual fixed production cost 35,000.00
Variable selling expense (unit) 3.00
Annual fixed selling expense 15,000.00
Produced 12,500 units during the period
No inventory at January 1 (beg.)
Sold 10,000 units
Total variable annual cost charged to expense in direct costing
a. $110,000
b. $117,500
c. $80,000
d. $100,000
6. Total fixed cost charged against current year’s operations in absorption costing
a. P35,000
b. $25,000
c. $15,000
d. $43,000
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