Super Bike Manufacturing Company presents the following data for year 2022: Opening inventory: 0 Units Sales: 8,000 Units Production: 10,000 Units • Closing inventory: 2,000 Units • Direct materials: $240 Direct labor: $280 • Variable manufacturing overhead expenses: $100 • Variable selling and administrative expenses: $40 . Fixed manufacturing overhead expenses: $1200,000 • Fixed selling and administrative expenses: $800,000 Required: Using the data given above, compute the unit product cost of one bike under: 1. absorption costing system. 2. variable costing system.

Super Bike Manufacturing Company presents the following data for year 2022: Opening inventory: 0 Units Sales: 8,000 Units Production: 10,000 Units • Closing inventory: 2,000 Units • Direct materials: $240 Direct labor: $280 • Variable manufacturing overhead expenses: $100 • Variable selling and administrative expenses: $40 . Fixed manufacturing overhead expenses: $1200,000 • Fixed selling and administrative expenses: $800,000 Required: Using the data given above, compute the unit product cost of one bike under: 1. absorption costing system. 2. variable costing system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and $30,000 manufacturing overhead cost, which included 20% fixed manufacturing overhead cost. The selling and administrative expenses were $100,000, which included $60,000 variable selling and administrative costs. Assume that the selling price per unit $20, how much was the total contribution margin? a. $194,000 b. None of the given answers С. $134,000 d. $86,000 е. $104,000
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Alltech Inc. has collected the following data. (There are no beginning inventories.) Units produced 510 units Sales price $120 per unit Direct materials $19 per unit Direct labor $15 per unit Variable manufacturing overhead $9 per unit Fixed manufacturing overhead $16,000 per year Variable selling and administrative costs $10 per unit Fixed selling and administrative costs $12,100 per year What is the operating income using absorption costing if 500 units are sold? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
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Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month: Direct materials costs $30,000 Direct labor costs 55,000 Variable manufacturing overhead costs 20,000 Fixed manufacturing overhead costs 25,000 Variable Selling and Administrative expenses 15,000 Fixed Selling and Administrative expenses 10,000 The product costs per unit under absorption costing would be: Group of answer choices $15.50 per unit $10.50 per unit $2.5 per unit $13 per unit
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