Units produced this year 45,000 units Units sold this year 53,000 units Direct materials $5 Direct labor $2 Variable overhead $6 Fixed overhead ? O $225,000 O $180,000 If the company's cost per unit of finished goods using absorption costing is $18, what is total fixed overhead? O $270,000 O $315,000 per unit O $720,000 per unit per unit in total

Units produced this year 45,000 units Units sold this year 53,000 units Direct materials $5 Direct labor $2 Variable overhead $6 Fixed overhead ? O $225,000 O $180,000 If the company's cost per unit of finished goods using absorption costing is $18, what is total fixed overhead? O $270,000 O $315,000 per unit O $720,000 per unit per unit in total

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Description: s Units produced this year 45,000 unitsUnits sold this year53,000 unitsDirect materials$5Direct labor $2Variable overhead $6Fixed overhead ?O $225,000O $180,000If the company's cost per unit of finished goods using absorptioncosting is $18, what is t

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Units produced this year 45,000 units
Units sold this year
53,000 units
Direct materials
$5
Direct labor $2
Variable overhead $6
Fixed overhead ?
O $225,000
O $180,000
If the company's cost per unit of finished goods using absorption
costing is $18, what is total fixed overhead?
O $270,000
O $315,000
per unit
O $720,000
per unit
per unit
in total
preen
Stop shar

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Step 1: Introducing Absorption Costing

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Step 2: Calculate the Fixed Manufacturing OH Cost Per Unit

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Step 3: Calculate the total Fixed Overhead

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