Troy Company introduced a new product three years ago. Troy uses standard costing to account for the costs. The predetermined fixed overhead rate is based on budgeted normal utilization of 10,000 units per year. There were no price, spending, or efficiency variances. Production volume variances are closed to cost of goods sold. Relevant information for the Years 1, 2, and 3 follows: Year 1 Year 2 Year 3 Units produced 10,000 9,800 14,000 8,000 10,800 Units sold 10,000 $75 per unit 9 per unit 15 per unit Selling price Direct materials Direct labor Variable manufacturing overhead Variable marketing & administrative Fixed manufacturing overhead 12 per unit 8 per unit $110,000 $ 75.000 Fived marketing & administrative

Troy Company introduced a new product three years ago. Troy uses standard costing to account for the costs. The predetermined fixed overhead rate is based on budgeted normal utilization of 10,000 units per year. There were no price, spending, or efficiency variances. Production volume variances are closed to cost of goods sold. Relevant information for the Years 1, 2, and 3 follows: Year 1 Year 2 Year 3 Units produced 10,000 9,800 14,000 8,000 10,800 Units sold 10,000 $75 per unit 9 per unit 15 per unit Selling price Direct materials Direct labor Variable manufacturing overhead Variable marketing & administrative Fixed manufacturing overhead 12 per unit 8 per unit $110,000 $ 75.000 Fived marketing & administrative

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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Subject-Acounting
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