Week 4 - Learning Team A Assignment

# Week 4 - Learning Team A Assignment - Problem P7-1A Blue...

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Problem P7-1A Blue Mountain Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a light-weight, self-standing tent. Cost and sales data for the first month of operations are shown below. Manufacturing costs:  Fixed Overhead \$200,000  The tent sells for \$150 Variable Overhead \$4 / tent has asked for an inco Direct Labor \$16 / tent Instructions Direct Materials \$40 / tent (a) Assuming the com Beginning Inventory 0 (i) Calculate the manu Tents Produced 10,000 (ii) Prepare an absorp Tents Sold 9,000 (b) Assuming the com Selling and Administrative Costs: (i) Calculate the manu Fixed    \$400,000  (ii) Prepare a variable Variable   \$6 / tent sold (c) Reconcile the diffe (a) (i) Manufacturing cost per unit =  Direct materials 40 Direct labor 16 Variable manufacturing overhead 4 Fixed manufacturing overhead (200,000 / 10,000 units produced)

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## This note was uploaded on 01/19/2011 for the course ACC 349 taught by Professor Christie during the Spring '08 term at University of Phoenix.

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Week 4 - Learning Team A Assignment - Problem P7-1A Blue...

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