International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
9th Edition
ISBN: 9780134729220
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
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Chapter 11.3, Problem 1QS3
Summary Introduction
To Determine:
How a company divides its activities among separate units and coordinates activities among units is called what?
Introduction:
Structure differs between companies depends upon the industry it deals in and its goals. Specialized functions are performed by different departments and coordinate with each other to achieve company’s goal.
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General Account
Blue Sky Company reports the following costing data on its product for
its first year of operations. During this first year, the company produced
42,000 units and sold 34,000 units at a price of $130 per unit.
Production costs:
Direct materials per unit
Direct lavor per unit
Variable overhead per unit
Fixed overhead for the year
$ 54
$ 20
$6
$ 4,62,000
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Fixed selling and administrative cost per year
Assume that this company uses variable costing.
$ 9
$ 1,10,000
a. Determine its unit product cost (Omit the '$' sign in your response.)
b. Prepare its income statement for the year under variable costing.
(Input all amounts as positive values except net loss which should be
indicated with a minus sign. Omit the '$' sign in your response.)
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International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
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