Year 3-period costs for Holley, under both the absorption and variable cost methods.

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Question

Year 3-period costs for Holley, under both the absorption and variable cost methods.

1 The following information relates to Holley Inc.'s Year 3 financials: [ICH. the icon to view the information.) Year 3-period costs for Holley, under both the absorption and variable cost methods. will be

0 A. Absorption Method Variable Cost Method $ 564,000 $ 889,000 0 B. Absorption Method Varlablo Cost Method $ 339,000 $ 704,000 0 C. Absorption Method Variable Cost Method $ 339,000 $ 889,000 00. Absorption Method Variable Cost Method

564,000 704,000

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Answer 1

Answer #1

Under Absorption costing = Period cost = Variable SG&A expenses + Fixed SG&A expenses

= $140,000 + $199,000

= $339,000

Under Variable costing = Period cost = Variable SG&A expenses + Fixed SG&A expenses +Fixed overhead

= $140,000 + $199,000 + $365,000

= $704,000

Final Answer

Option B " Absorption method $339,000 and Variable cost method $704,000" is correct answer.

answered by: Ashik Padanilam

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Answer 2

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Year 3-period costs for Holley, under both the absorption and variable cost methods.

Homework Answers

Final Answer

Option B " Absorption method $339,000 and Variable cost method $704,000" is correct answer.

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Year 3-period costs for Holley, under both the absorption and variable cost methods.

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Year 3-period costs for Holley, under both the absorption and variable cost methods.

Homework Answers

Final Answer

Option B " Absorption method $339,000 and Variable cost method $704,000" is correct answer.

Add Answer to: Year 3-period costs for Holley, under both the absorption and variable cost methods.

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Add Answer to:
Year 3-period costs for Holley, under both the absorption and variable cost methods.