gnbexam07 - GNB 11/e Practice Exam Chapter 7 Print these...

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GNB 11/e Practice Exam – Chapter 7 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. The Bohne Company produces chocolate candies. The chocolates sell for $12 per box. Annually, the company produces 10,000 boxes of chocolates and sells 9,000 boxes of the candies. The company’s cost information includes the following: Direct materials $ 2.00 per unit Direct labor $ 3.00 per unit Fixed manufacturing overhead $20,000 Fixed selling and administrative expenses $ 5,000 Variable manufacturing overhead $ 1.00 pr unit Variable selling and administrative expenses $ 3.00 per unit Part (a) Compute the unit product cost under absorption costing. Part (b) Compute the unit product cost under variable costing.
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Part (c) Prepare an income statement using absorption costing.
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This note was uploaded on 12/11/2009 for the course GEOS 1004 taught by Professor Aksinha during the Fall '08 term at Virginia Tech.

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gnbexam07 - GNB 11/e Practice Exam Chapter 7 Print these...

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