Comparing Full Absorption Costing and Variable Costing
The following information pertains to the first year of operation for Sonic Boom Radios, Inc.
Number of units produced | 3,000 |
Number of units sold | 2,500 |
Unit sales price | $ 350 |
Direct materials per unit | 70 |
Direct labor per unit | 60 |
Variable manufacturing overhead per unit | 10 |
Fixed manufacturing overhead ($225,000/3,000 units) | 75 |
Variable selling expenses ($15/unit sold) | 37,500 |
Fixed general and administrative expenses | 65,000 |
Required:
Prepare Sonic Boom’s full absorption costing income statement and variable costing income statement for the year.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.