Chapter 5

# Chapter 5 - Problem 5-18A 1 The unit product cost under the...

This preview shows pages 1–2. Sign up to view the full content.

Problem 5-18A  1. The unit product cost under the variable costing method is  computed as follows: Direct materials. ....................................... \$ 8 Direct labor. ............................................. 10 Variable manufacturing overhead. ...........       2    Unit product cost. ..................................... \$20 With this figure, the variable costing income statements can be  prepared: Year 1 Year 2 Sales. ............................................................ \$1,000,000 \$1,500,000 Less variable expenses: Variable cost of goods sold (20,000 units x  \$20 per unit; 30,000 units x \$20 per unit) 400,000 600,000 Variable selling and administrative (20,000  units x \$3 per unit; 30,000 units x \$3 per  unit). .........................................................             60,000                 90,000     Total variable expenses. ................................         460,000             690,000     Contribution margin. ......................................         540,000             810,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

Chapter 5 - Problem 5-18A 1 The unit product cost under the...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online