GNBExam07

GNBExam07 - GNB 12e Practice Exam Chapter 7 1. Piscopo...

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GNB 12e Practice Exam – Chapter 7 1. Piscopo Company produces mint chocolate candies. The chocolates sell for $12 per box. During its first year of operations, the company produced 10,000 boxes of chocolates and sold 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. Direct materials $2.00 Direct labor 3.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead ($20,000 divided by 10,000 units) 2.00 Product cost using absorption costing $8.00 Part (b) Compute the unit product cost under variable costing. Direct materials $2.00 Direct labor $3.00 Variable manufacturing overhead $1.00 Product cost using variable costing $6.00
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This note was uploaded on 07/15/2010 for the course ECON 137A taught by Professor Watson during the Fall '08 term at UCSB.

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GNBExam07 - GNB 12e Practice Exam Chapter 7 1. Piscopo...

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