p7-3a - Name: Date: Instructor: Course: Managerial...

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

View Full Document Right Arrow Icon
FileName: 7ade531e83df3a90d15bc699f91a32d19592584c.xls, Tab: Problem P7-3A, Page 1 of 2, 12/28/2011, 19:02:12 Name: Date: Instructor: Course: motor used in a wide variety of applications. During the coming year it expects to sell 50,000 units for $30 per unit. Ester Madonna is the division manager. She is considering producing either 50,000 or 80,000 units during the period. Other information is presented in the schedule. Division Information for 2005 Beginning inventory 0 Expected sales in units 50,000 Selling price per unit $30 Variable manufacturing costs per unit $12 Fixed manufacturing overhead costs (total) $400,000 Fixed manufacturing overhead costs per unit: Based on 50,000 units $8 per unit ($400,000 / 50,000 units) Based on 80,000 units $5 per unit ($400,000 / 80,000 units) Manufacturing cost per unit: Based on 50,000 units $20 per unit ($12 variable + $8 fixed) Based on 80,000 units $17 per unit ($12 variable + $5 fixed) Variable selling and admin expenses $2 Fixed selling and admin expenses (total) $40,000 Instructions: BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2005 Absorption Costing Units to be produced: 50,000 80,000 Sales Formula Formula Title Formula
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/28/2011 for the course ACCT 221 taught by Professor Leonarda.bacon during the Winter '07 term at CSU Bakersfield.

Page1 / 2

p7-3a - Name: Date: Instructor: Course: Managerial...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online