Maxwell Company manufacturing office printers, the following - 14300

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Mon 08 Oct, 2012
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Request Description

 

Maxwell Company manufacturing office printers, the following information is available for the year 2012 is regards to their operations.

 

Manufacturing information:

 

Number of table manufactured were;       10,000

 

Material information;                     $300,000

 

Total material cost:

 

Direct labor cost               $450,000

 

Total labor cost                $450,000

 

Manufacturing overhead information;

 

Total overhead cost  $600,000

 

Total fixed overhead     $375,000

 

Total variable overhead     $225,000

 

Selling, General and Administrative Expenses

 

Selling Expenses:    

 

Total fixed costs     $125,000

 

Variable cost per unit sold    $6.75

 

General Expenses;

 

Total fixed costs  $200,000

 

Variable cost per unit sold    $8.00

 

Administrative Expenses;

 

Total fixed costs   $100,000

 

Variable cost per unit sold    $5.00

 

During the year 2012, there were 9,600 printers sold at a unit sales price of $210 per printer.

 

Required:

 

Compute the unit manufacturing cost of a printer under the direct (variable) costing method.

 

Compute the unit manufacturing cost of a printer under the full absorption costing method.

 

Prepare an external (traditional) income statement under absorption costing.

 

 

 

Solution Description

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