Selected data for Babar Ltd of past year of operations are presented below Product X Production [ in units ] Sales [ in units] Selling price DLHours 25000 18000 $4.00 800 Manufacturing cost Raw Materials [S] Salaries of direct labour[$] 17000 24000 8000 Actual machine hours worked Hourly rate for DLH Non manufacturing cost Variable selling Fixed selling cost $30.00 18000 15000 Estimated fixed cost $28000 Budgeted Machine hours 8400 Company uses absorption cost based on machine hours. For calculating product cost using variable costing, assume 40 % of the overhead applied to be variable overhead [VOH]and the rest to be fixed overhead [FOH] %3D REQUIRED
Selected data for Babar Ltd of past year of operations are presented below Product X Production [ in units ] Sales [ in units] Selling price DLHours 25000 18000 $4.00 800 Manufacturing cost Raw Materials [S] Salaries of direct labour[$] 17000 24000 8000 Actual machine hours worked Hourly rate for DLH Non manufacturing cost Variable selling Fixed selling cost $30.00 18000 15000 Estimated fixed cost $28000 Budgeted Machine hours 8400 Company uses absorption cost based on machine hours. For calculating product cost using variable costing, assume 40 % of the overhead applied to be variable overhead [VOH]and the rest to be fixed overhead [FOH] %3D REQUIRED
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer first three question , if you can answer all it would be very helpful otherwise answer first three
![Selected data for Babar Ltd of past year of operations are
presented below
Product X
25000
Production [ in units ]
Sales [ in units]
Selling price
DLHours
18000
$4.00
800
Manufacturing cost
Raw Materials [S]
Salaries of direct labour[$]
Actual machine hours worked
17000
24000
8000
Hourly rate for DLH
Non manufacturing cost
Variable selling
Fixed selling cost
$30.00
18000
15000
Estimated fixed cost $28000
Budgeted Machine hours 8400
Company uses absorption cost based on machine hours.
For calculating product cost using variable costing, assume 40 %
of the overhead applied to be variable overhead [VOH]and the rest
to be fixed overhead [FOH]
%3D
REQUIRED
1. Calculate product cost of product X using variable cost.
2. Calculate product cost of product X using absorption cost ..
3. Calculate variable cost of goods for the year
4. Find the variable-costing net income
5. Calculate cost of goods for the year using absorption method
6. Find the net income using absorption method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F276644d2-4a5d-47c6-95c7-b5f6768d9a89%2F7a9ca941-a934-4501-8819-8b73adacae4d%2Fzbpajba_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Selected data for Babar Ltd of past year of operations are
presented below
Product X
25000
Production [ in units ]
Sales [ in units]
Selling price
DLHours
18000
$4.00
800
Manufacturing cost
Raw Materials [S]
Salaries of direct labour[$]
Actual machine hours worked
17000
24000
8000
Hourly rate for DLH
Non manufacturing cost
Variable selling
Fixed selling cost
$30.00
18000
15000
Estimated fixed cost $28000
Budgeted Machine hours 8400
Company uses absorption cost based on machine hours.
For calculating product cost using variable costing, assume 40 %
of the overhead applied to be variable overhead [VOH]and the rest
to be fixed overhead [FOH]
%3D
REQUIRED
1. Calculate product cost of product X using variable cost.
2. Calculate product cost of product X using absorption cost ..
3. Calculate variable cost of goods for the year
4. Find the variable-costing net income
5. Calculate cost of goods for the year using absorption method
6. Find the net income using absorption method
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